On August 1, Shead Corporation Had $35,000 of Raw Materials

Multiple Choice

On August 1, Shead Corporation had $35,000 of raw materials on hand. During the month, the company purchased an additional $56,000 of raw materials. During August, $69,000 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 $6,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Manufacturing Overhead account as a consequence of the raw materials transactions in August total:

A) $0
B) $63,000
C) $69,000
D) $6,000