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:

Latinos

People of Latin American origin or descent, often living in the United States.

Stepfamilies

Family units formed by the remarriage of a divorced or widowed person that include a child or children from a previous marriage.

Nuclear Families

A family structure consisting of two parents (a mother and a father) and their children, considered the traditional family unit.

Cohesive

Characterized by unity; sticking together tightly or working well together to form a whole.