24E-d - Horngren'S Financial And Managerial Accounting

Question

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.

d. Used in production: direct materials, \(7,500; indirect materials, \)5,000.

Step-by-Step Solution

Answer

Date	Particulars	Debit ($)	Credit ($)
	Work-in-process inventory (direct material)	7,500
	Manufacturing overhead (indirect material)	5,000
	Raw material inventory		12,500

Step-by-Step Solution: Step 1: Direct material

The raw material which is directly used while manufacturing the product of the company is considered as the direct material.

Step 2: Recording of Material used in production in the books of the company

The company record material used in production by debiting the work-in-process account for direct material, manufacturing overhead account for indirect material and by crediting the raw material inventory account.