Slife Corporation has provided the following data concerning its most important raw material, compound G81N: When recording the use of materials in production, Raw Materials would be:
A)debited for $68,558.
B)credited for $83,839.
C)credited for $68,558.
D)debited for $83,839.

Question

Slife Corporation has provided the following data concerning its most important raw material, compound G81N:  When recording the use of materials in production, Raw Materials would be:
A)debited for $68,558. 
B)credited for $83,839. 
C)credited for $68,558. 
D)debited for $83,839.

Quizplus · Accepted Answer

The information provided only indicates the cost of the raw material, which is $68,558. When raw materials are used in production, they are credited for the cost and debited to the appropriate inventory account (such as Work-in-Process). Therefore, the correct entry would be to credit Raw Materials for $68,558. None of the options provided reflect this entry, but the closest one is option C, which credits Raw Materials but for the wrong amount ($83,839).

Slife Corporation Has Provided the Following Data Concerning Its Most