When Direct Materials Are Used in Production,which of the Following

question 33

Multiple Choice

When direct materials are used in production,which of the following accounts is credited?

• A)Raw Materials Inventory
• B)Work in Process Inventory
• C)Finished Goods Inventory
• D)Cost of Goods Sold

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Definitions:

Discount

A reduction applied to a regular price or rate, often used as an incentive for purchasing goods or services.

Mark-up

The amount added to the cost price of goods to cover overhead and profit; the difference between the cost and selling price.

Retail Prices

The price at which goods and services are sold to the end consumer, inclusive of markup and VAT.

Markdown

A reduction from the original or retail price of goods or services to increase sales or clear inventory.