A Review of a Company's Work-In-Process Inventory Account Found a Debit

question 77

Multiple Choice

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the firm:

• A) also recorded a credit to Raw-Material Inventory.
• B) also recorded a credit to Manufacturing Supplies Inventory.
• C) was accounting for the usage of direct materials.
• D) was accounting for the usage of indirect materials.
• E) also recorded a credit to Raw-Material Inventory and was accounting for the usage of direct materials.

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Definitions:

Account Representative

A professional responsible for managing and maintaining the relationship between a company and its clients or customers.

Sales Engineer

A professional who sells complex scientific and technological products or services, often requiring specialized knowledge.

Detail Salesperson

A sales professional typically in the pharmaceutical or medical equipment industries, who provides detailed information about products to healthcare professionals.

Order-Takers

Individuals or employees within a company who handle straightforward purchase requests from customers, rather than actively selling or persuading.