Problem:
On April 1, Stelter Corporation had $27,000 of raw materials on hand. During the month, the company purchased an additional $53,000 of raw materials. During April, $63,000 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 $6,300.
Required:
Question: 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 April total:
- $63,000
- $27,000
- $53,000
- $80,000
Note: Please show guided help with steps and answer.