Question

Here is some basic data for Shannon​ Company:

Cost of materials purchases on account	$72,000
Cost of materials requisitioned​ (includes $2,900 of​ indirect)	$53,400
Direct labor costs incurred	$79,600
Manufacturing overhead costs​ incurred, including indirect materials	$87,700
Cost of goods completed	$257,450
Cost of goods sold	$167,200
Beginning raw materials inventory	$17,400
Beginning work in process inventory	$33,600
Beginning finished goods inventory	$35,300
Predetermined manufacturing overhead rate​ (as % of direct labor​cost)	120​%

The journal entry to record the cost of raw materials placed into production involves a

A. debit to Work−in−Process Inventory account for $53,400.

B. credit to Manufacturing Overhead account for $2,900.

C. debit to Overhead account for $50,500.

D. debit to Work−in−Process Inventory account for $50,500.

Answer 1

The journal entry to record the cost of raw materials placed into production involves a

Date	accounts & explanation	debit	credit
	Work in process a/c	50500
	Manufacturing overhead a/c	2900
	Raw materials a/c		53400
	(To record transfer raw material)

SO OPTION D is correct answer