Here Is Some Basic Data for Wharton Company The Journal Entry to Record the Cost of Raw Materials

question 179

Multiple Choice

Here is some basic data for Wharton Company: $\begin{array}{|l|r|}\hline \text { Cost of materials purchases on account } & \$ 75,000 \\\hline \text { Cost of materials requisitioned (includes } \$ 2,000 \text { of indirect) } & 43,000 \\\hline \text { Direct labor costs incurred } & 75,000 \\\hline \text { Manufacturing overhead costs incurred, including indirect materials } & 95,000 \\\hline \text { Cost of goods completed } & 226,750 \\\hline \text { Cost of goods sold } & 138,000 \\\hline \text { Beginning raw materials inventory } & 15,000 \\\hline \text { Beginning work in process inventory } & 32,000 \\\hline \text { Beginning finished goods inventory } & 31,000 \\\hline \text { Predetermined manufacturing overhead rate (as \% of direct labor cost) } & 125 \% \\\hline\end{array}$
The journal entry to record the cost of raw materials placed into production involves a:

• A)debit to overhead for $41,000.
• B)debit to work in process inventory for $43,000.
• C)debit to work in process inventory for $41,000.
• D)credit to manufacturing overhead for $2,000.

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Definitions:

Ethics Competency

The ability to recognize ethical issues, make informed ethical judgments, and take appropriate ethical actions reflecting both the standards of professional practice and the broader community expectations.

Core Components

The fundamental elements or parts that are necessary for the functionality or identity of a system, concept, or strategy.

Ethical Competency

The capacity to understand, evaluate, and act upon moral principles and values in decision-making and behavior.

Ethical Dilemmas

Situations in which individuals are required to choose between two conflicting moral principles, making it difficult to decide the right course of action.