On June 1, 2012, Dalton Production Company Had Beginning Balances

question 6

Multiple Choice

On June 1, 2012, Dalton Production Company had beginning balances as shown in the T-accounts below. During June, the following transactions took place:
June 2: Issue $2,400 of direct materials and $200 of indirect materials to production.
Following this transaction, what was the balance in the Work in process inventory account?

• A)$20,000
• B)$22,400
• C)$22,600
• D)$20,200

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Definitions:

Sole Proprietorship

A business structure where a single individual owns and operates the business.

Corporate Income Tax

A tax on the income or profit of corporations, which contributes to government revenue.

Gross Investment

The total amount of money spent on capital goods, or assets intended to produce future income, not accounting for depreciation.

Net Investment

The total amount spent on capital assets, like buildings and machinery, minus depreciation. It reflects the increase in the value of physical assets.