On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 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 $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Manufacturing Overhead account as a consequence of the raw materials transactions in November total: Multiple Choice $92,000 $0 $95,000 $3,000
On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 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 $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Manufacturing Overhead account as a consequence of the raw materials transactions in November total: Multiple Choice $92,000 $0 $95,000 $3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During
November, $95,000 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 $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions:
The credits to the Manufacturing Overhead account as a consequence of the raw materials transactions in November total:
Multiple Choice
$92,000
$0
$95,000
$3,000
Expert Solution
Step 1
Given,
Total materials used = $95,000
Indirect materials used = $3,000
Direct materials used = $95,000 - $3,000
Direct materials used = $92,000
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