ABC Company Uses a Materials Inventory Account to Record Both

question 52

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 the Factory Overhead account is:

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

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Definitions:

Transcription Factor

Regulatory protein that influences transcription by binding directly to DNA; e.g., an activator or repressor.

Enhancer

DNA sequences that increase the transcription level of a gene they are associated with, enhancing gene expression.

Lactose Operon

A group of genes involved in the metabolism of lactose in bacteria, controlled by a mechanism that turns gene expression on or off depending on the presence of lactose.

Enzymes

Biological molecules, typically proteins, that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.