When Raw Materials Are Used in Production and Are Recorded

question 16

Multiple Choice

When raw materials are used in production and are recorded in a job cost system:

• A) Goods in Process is credited and Finished Goods is debited.
• B) Direct Material and Indirect Material are debited and Goods in Process is credited.
• C) Direct Material and Indirect Material are debited and Raw Materials Inventory is credited.
• D) Goods in Process is debited and Raw Materials Inventory is credited.
• E) Goods in Process and Factory Overhead are debited and Raw Materials Inventory is credited.

---

Definitions:

Retirement Savings Contributions Credit

A tax credit that encourages low to moderate income taxpayers to make contributions to qualified retirement accounts.

AGI

Adjusted Gross Income is the total income minus specific deductions, used to determine taxable income on an individual's tax return.

Contributed

The act of giving or donating something, often for a cause or in context of capital given to a business or investment.

Foreign Tax Credit

An irreversible tax credit for income taxes remitted to a foreign country because of withholdings on foreign income tax.