A Debit to Direct-Materials Inventory Is Used to Record _____

question 64

Multiple Choice

A debit to Direct-Materials Inventory is used to record _____.

• A)a requisition of direct materials
• B)cost of goods completed
• C)a sale of merchandise
• D)purchase of direct materials

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Definitions:

Supplies Expense

The cost associated with materials or goods required to operate a business but not directly tied to the products sold.

Rent Expense

This outlines the cost incurred by a business to use property or equipment as part of its operational activities for a certain period.

Wages Expense

The total cost incurred by a company to compensate its employees, including salaries, wages, and other forms of employee benefits.

Operating Revenues

The income earned by a company from its normal business activities, typically from the sale of goods and services to customers.