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

---

Definitions:

Externalities

Economic side effects or consequences that affect an uninvolved third party; can be either positive or negative.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, intellectual property, or other possessions.

Negatively Affects

Causes a decrease in effectiveness, quality, or function.

Air Traffic

The movement of aircraft within the airspace system, and the operational procedures, technical infrastructure, and personnel that control and manage it.