A Journal Entry Includes a Debit to Work in Process

question 139

Multiple Choice

A journal entry includes a debit to Work in Process Inventory and a credit to Raw Material Inventory.The explanation for this would be that

• A)indirect material was placed into production.
• B)raw material was purchased on account.
• C)direct material was placed into production.
• D)direct labor was used for production.

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Definitions:

Price Floors

A government- or group-imposed minimum price set above the equilibrium price, preventing market prices from dropping below it.

Profits

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Total U.S. Income

The aggregate pre-tax income earned by individuals and entities within the United States in a given period.

Land Rent

Payment made for the use of land, reflecting its productivity, location, and value form a part of real estate economics.