Question

Boysenberry Company manufactures vacuum cleaners and follows the first-in, first-out (FIFO) method to record inventories. The journal entry to record requisitions of materials by the Assembling Department for the month of June will include:

a. a debit to Work in Process—Assembling and a credit to Notes Payable.
b. a debit to Work in Process—Assembling and a credit to Sales.
c. a debit to Work in Process—Assembling and a credit to Materials.
d. a debit to Work in Process—Assembling and a credit to Accounts Receivable.

Answer 1

The journal entry to record requisitions of materials by the Assembling Department for the month of June will include a debit to Work in Process—Assembling and a credit to Materials.

Step-by-step explanation:

The journal entry to record requisitions of materials by the Assembling Department for the month of June will include a debit to Work in Process—Assembling and a credit to Materials. This is because when materials are requisitioned by the Assembling Department, it is considered a cost of production. The debit to Work in Process—Assembling represents the increase in the cost of production, while the credit to Materials represents the decrease in the inventory of materials.