Question
6 On August 1, Shead Corporation had $33,700 of raw materials on hand. During the month, the company purchased an additional $75,800 of raw materials.
6
On August 1, Shead Corporation had $33,700 of raw materials on hand. During the month, the company purchased an additional $75,800 of raw materials. During August, $79,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of August total: |
a | $75,800 |
b | $109,500 |
c | $75,000 |
d | $79,000 Which is correct? |
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