The Journal Entry to Issue $600 of Direct Materials and $30

question 162

Multiple Choice

The journal entry to issue $600 of direct materials and $30 of indirect materials to production involves debit(s) to the ________.

• A) Work-in-Process Inventory account for $600 and Finished Goods Inventory account for $30
• B) Manufacturing Overhead account for $630
• C) Work-in-Process Inventory account for $600 and Manufacturing Overhead account for $30
• D) Work-in-Process Inventory account for $630

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically noted on the income statement.

Income Taxes

Taxes imposed by the government on the income earned by individuals and businesses within its jurisdiction.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Liquidity Ratios

Ratios that measure a company’s ability to meet its currently maturing obligations.