question archive On December 1, Mogro Corporation had $26,000 of raw materials on hand

On December 1, Mogro Corporation had $26,000 of raw materials on hand

Subject:AccountingPrice:4.89 Bought3

On December 1, Mogro Corporation had $26,000 of raw materials on hand. During the month, the Corporation purchased an additional $60,000 of raw materials. During December, $62,000 of raw materials were requisitioned from the storeroom for use in production. The debits entered in the Raw Materials account during the month of December total:

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Solution; Computation of the debits entered in the Raw Materials account during the month of December total

 

The given information in the problem

 

Raw materials on Hand = $26,000

In December Purchases of Raw Materials = $60,,000

Raw materials were requisitioned from the storeroom for use in production = $62,000

 

Debits entered in the Raw Materials account Journal entry would be

 

Raw Materials A/c-----------Dr $60,000

Account Payable or Cash A/c $60,000

 

Hence the Debits entered in the Raw Materials account during the month of December total is $60,000

Step-by-step explanation

Explanation:

 

Raw materials on Hand = $26,000 already entered last month so will not be part of December purchase of Raw Materials

 

Raw materials were requisitioned from the storeroom for use in production = $62,000 which includes closing stock so its not part of December Raw materials