Question Here are some basic data for Shannon Company:

Cost of materials purchases on account $72,600

Cost of materials requisitioned (includes $2400 of indirect) $53,000

Direct labor costs incurred $79,000

Manufacturing overhead costs incurred, including indirect materials $87,600

Cost of goods completed $256,750

Cost of goods sold $167,500

Beginning raw materials inventory 17,600

Beginning work in process inventory 33,900

Beginning finished goods inventory 35,700

Predetermined manufacturing overhead rate (as % of direct labor cost) 120%

The journal entry to record the cost of raw materials placed into production involves a

1. debit to Work-in-Process inventory account for $50,600.

2. debit to Overhead account for $50,600.

3. debit to Work-in-Process Inventory account for $53,000.

4. credit to Manufacturing Overhead account for $2400.