ABC Company Uses a Materials Inventory Account to Record Both

question 74

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 information: $\begin{array}{lr}\text { Total materials (direct and indirect) purchased } & \$ 90,000 \\\text { Indirect materials issued to production } & 30,000 \\\text { Total materials issued to production } & 110,000 \\\text { Beginning materials inventory } & 50,000\end{array}$ The debit to Work-in-Process Inventory account for materials is:

• A)$110,000.
• B)$30,000.
• C)$90,000.
• D)$80,000.
• E)$50.000.

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Definitions:

Foreign Court's Decision

Judgments or rulings made by a court in one country that may be recognized or enforced in another country's legal system under certain conditions.

Subsidence

The gradual caving in or sinking of an area of land, which can occur due to natural phenomena or human activities.

Excavation

The process of digging or removing earth, typically for the purpose of discovering archaeological remains or for construction.

Binding Decision

A final and enforceable ruling or agreement that must be followed by the parties involved.