If Two Different Direct Materials-Such as the Circuit Board and Microphone-Are

question 48

True/False

If two different direct materials-such as the circuit board and microphone-are added to the process at different times, a company will need two different direct-materials categories to assign direct materials cost.

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Definitions:

Balance Sheet Credit Column

The section of the balance sheet where liabilities and equity accounts are listed, typically reflecting sources of the company’s funds.

Worksheet

A document or tool used for planning, organizing information, solving problems, and making calculations.

Income Summary

An account used in closing entries to collect the revenue and expenses for a specific accounting period before transferring the net result to capital.

Expenses

Costs incurred in the process of earning revenues, typically categorized as operating or non-operating.