The Journal Entry to Issue $500 of Direct Materials and $30

question 118

Multiple Choice

The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves debit(s) to the:

• A)Work-in-Process Inventory account for $500 and Finished Goods Inventory account for $30.
• B)Manufacturing Overhead account for $530.
• C)Work-in-Process Inventory account for $500 and Manufacturing Overhead account for $30.
• D)Work-in-Process Inventory account for $530.

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Definitions:

Nominal Rate

The interest rate before adjustment for inflation, not reflecting the real cost of borrowing or the real return on an investment.

Compounded Monthly

The routine of accruing interest monthly, which incorporates calculating interest on the initial principal as well as on the interest that has previously been accrued.

Salary Increase

An increment in the amount of money earned by an employee on a regular basis, often annually or based on a performance review.

Total Return

The overall return on an investment over a specific period, including both capital gains and income, such as dividends or interest.