Question

On November 1, Arvelo Corporation had $35,000 of raw materials on hand. During the month, the company purchased an additional $75,000 of raw materials. During November, $89,000 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 $3,600. 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 November total:

Answer 1

Ans.	Date	Accounts and Titles				Dr.($)	Cr.($)
	Nov.	Raw Material Inventory				75,000
		To Accounts Payable					75,000
		(Being purchase of raw material on account)
	Nov.	Work in Progress				82,700
		Manufacturing Overhead				6,300
		To Raw Materials					89,000
		(Being raw material requisition for use in production )
	Raw material account for the of November:
	Opening Raw material Inventory					35,000
	Add: Purchase of Raw Material					75,000
	Less: Raw Material requisition for production					89,000
	Ending Raw Material					$    21,000