When materials are requisitioned from the Raw Materials Inventory they can be cl

Question

When materials are requisitioned from the Raw Materials Inventory they can be classified as either direct materials (which are traced directly to the job) or indirect materials (which are items so insignificant that they are not traced directly to a job and instead are included in manufacturing overhead). What is the journal entry made when the material is classified as direct material?* Debit Work in Process Inventory, Credit Direct Materials O Debit Direct Materials, Credit Raw Materials Inventory O Debit Direct Materials, Credit Raw Materials Inventory O Debit Work in Process Inventory, Credit Raw Materials Inventory Time cards are collected and it is determined that total labor (both direct and indirect) is $4,890. What journal entry would be made when the weekly payroll is recorded? points O Debit Work in Process Inventory, Credit Factory Payroll O Debit Factory Payroll, Credit Cash or Wages Payable O Debit Work in Process Inventory, Credit Wages Payable O Debit Direct Labor,Credit Work in Process Inventory

Explanation / Answer

Answer to Question 1.

Option 4 is Correct.

The journal entry to record requisition of Direct Material is:

Work in Process (Dr). XXX

Raw Material Inventory XXX

Whereas, the journal entry to record requisition of Indirect Material is:

Manufacturing Overhead. XXX

Raw Material Inventory . XXX

Answer to Question 2.

Option 2 is correct.

The journal entry to record labor expense is:

Factory Payroll . XXX

Cash/ Wages Payable. XXX

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