How Is the Cost of Direct Materials Used in Production

question 95

Multiple Choice

How is the cost of direct materials used in production recorded?

• A)Credit to manufacturing overhead
• B)Credit to work in process inventory
• C)Credit to direct materials expense
• D)Credit to raw materials inventory

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Definitions:

Interest Rate

The Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Straight-Line Amortization

A method of calculating the depreciation of an asset or the repayment of a loan in equal installments over a specified period of time.

Accrued Interest

Interest that has accumulated but remains unpaid.

Discount on Bonds Payable

The difference between the face value of a bond and its lower selling price before maturity, reflecting investor perceptions of risk or interest rate differences.