Question

During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by materials requisitions. Complete the following journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

Dr Factory Overhead $550

Cr Raw Materials Inventory $550

Step-by-step explanation:

Based on the information given if the company incurred the amount of $550 of the indirect materials costs which means that the necessary journal entry will be to Debit Factory Overhead $550 and Credit Raw Materials Inventory $550

Dr Factory Overhead $550

Cr Raw Materials Inventory $550