On november 1, arvelo corporation had $42,000 of raw materials on hand. during the month, the company purchased an additional $68,000 of raw materials. during november, $75,000 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 $5,000. prepare journal entries to record these events. use those journal entries to answer the following question: the credits to the raw materials account for the month of november total: a) $75,000 b) $68,000 c) $42,000 d) $110,000

Choice D)  $ 110,000

Explanation:

S. No                  Account                              Debit                       Credit

1                     Opening Inventory            $ 42,000

                            Profit and Loss Appropriation Account        $ 42,000

2               Raw Materials (Purchases)      $ 68,000

                          Cash                                                                   $ 68,000

3            Work In Process                          $ 75,000

                           Materials                                                         $ 70,000

                Indirect Materials                                                       $ 5000

Materials Account

Debits  

Opening Inventory             $ 42,000

Purchases                           $ 68,000

Credits

Work In Process                  $ 70,000

Ending In Inventory             $ 40,000

Total Credits                          $ 110,000

Only choice D is correct because

a) $ 75,000 contains both direct and indirect materials

c) $ 42,000 is the opening inventory which is a debit

b) $ 68,000 are  the purchases which are again a debit to material account

answer: b 56, 250

explanation:

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o