A Company Failed to Post a $50 Debit to the Office

question 110

Multiple Choice

A company failed to post a $50 debit to the Office Supplies account.The effect of this error will be that the:

• A)Office Supplies account balance will be overstated.
• B)Trial balance will not balance.
• C)Error will overstate the debits listed in the journal.
• D)Total debits in the trial balance will be larger than the total credits.
• E)Trial balance will be in balance.

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Definitions:

First-In, First-Out Method

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the most recently purchased items in inventory.

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially finished goods in terms of fully finished goods, helpful in calculating costs in process costing systems.

Assembly Department

A division within a manufacturing process where parts are assembled to create a final product.

Conversion Cost

The sum of direct labor and overhead costs associated with transforming raw materials into finished goods.