ABC Company Uses a Materials Inventory Account to Record Both

question 32

Multiple Choice

ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost $\begin{array}{lr}\text { Total materials (direct and indirect) purchased } & \$ 90,000 \\\text { Indirect materials issued to production } & 30,000 \\\text { Total materials issued to production } & 110,000 \\\text { Beginning materials inventory } & 50,000\end{array}$ The amount of direct materials issued is:

• A)$110,000.
• B)$30,000.
• C)$90,000.
• D)$80,000.
• E)$50,000.

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Definitions:

Course Credits

Units that represent a measure of the educational workload involved in completing a course, which can contribute towards a qualification or degree.

GST Returns

A tax form that businesses must fill out to report the income collected through Goods and Services Tax (GST).

Remitted

The process of sending money in payment or as a gift.

Photographic Equipment

Devices and accessories used in the process of capturing images, such as cameras, lenses, tripods, and lighting equipment.