Dentlinger Company Uses a Job-Order Cost System and Had the Following

question 7

Multiple Choice

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.

-The journal entry to record the materials placed into production would include a

• A) credit to Direct-Materials Inventory for $164,000.
• B) debit to Direct-Materials Inventory for $296,000.
• C) credit to WIP Inventory for $164,000.
• D) debit to WIP Inventory for $296,000.

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Definitions:

Computerized Order System

A digital platform used to manage and process orders for goods or services efficiently.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Opportunity Cost of Capital

Opportunity Cost of Capital is the return that is forgone by investing in a project instead of in comparable financial securities or projects with a similar risk profile.

Net Present Value

A calculation used to assess the profitability of an investment, measuring the difference between the present value of cash inflows and the present value of cash outflows over time.