Question

A materials requisition slip showed that direct materials requested were $36000 and indirect materials requested were $6000. The entry to record the transfer of materials from the storeroom is__________-

Answer 1

Answer:

The entry to record the transfer of materials from the storeroom is

Debit Work in process                                 $ 36,000

Debit Factory overhead control                  $   6,000

Credit Material Account                               $ 42,000

The material is accounted in material stock account when purchase. Latter if material is used directly it is taken in work in process account. Indirect material is accounted in FOH account.