When a Supplies Internal Service Fund Records a Billing to the General

question 30

Multiple Choice

When a supplies internal service fund records a billing to the General Fund, the journal entry in the internal service fund will include:

• A) A debit to Due from General Fund.
• B) A debit to Due to General Fund.
• C) A debit to Billings to Department.
• D) A debit to Inventory of Supplies.

---

Definitions:

Actual Costs

The real or precise cost incurred in the production of goods or in the rendering of services, as opposed to estimated or standard costs.

Direct Labor Time Variance

This metric measures the difference between the actual hours worked and the standard hours planned, multiplied by the standard labor rate, assessing efficiency in production.

Direct Labor Hours

The total number of hours worked by employees directly involved in the manufacturing process, used as a measure for assigning labor costs to produced goods.

Completed Unit

A unit of product that has completed the manufacturing process and is considered ready for sale or delivery to the customer.