Question

Adelphia Manufacturing issued $70,000 of direct materials and $10,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction?
A)Raw Materials Inventory 80,000
Finished Goods Inventory 70,000
Work-in-Process Inventory 10,000
B)Work-in-Process Inventory 80,000
Raw Materials Inventory 80,000
C)Work-in-Process Inventory 70,000
Manufacturing Overhead 10,000
Raw Materials Inventory 80,000
D)Manufacturing Overhead 80,000
Raw Materials Inventory 80,000

Answer 1

Answer:

C)Work-in-Process Inventory 70,000

Manufacturing Overhead 10,000

Raw Materials Inventory 80,000

Explanation:

The direct materials are issued to work in process whereas the indirect material are accounted for in the manufacturing overheads. The raw materials inventory is credited as material is issued . The work in process and manufacturing overheads are debited as they receive materials.

All the indirect expenses are charged to factory overhead .