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During September at Renfro Corporation, $65,000 of raw materials were requisitioned from the storeroom for use in production.

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Answer #1

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· Indirect material used = $ 8000 will be debited to Manufacturing Overhead [MOH]

· Direct material used = $ 65000 – 8000 = $ 57000 will be debited to Work in Process account [WIP]

· Raw material will be credited by $ 65000

· Correct Answer = Option #2:
Dr WIP $ 57000
Dr MOH $ 8000
Cr Raw materials $ 65000

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