If Department C Uses $10,000 of Direct Materials and Department

question 33

True/False

If Department C uses $10,000 of direct materials and Department D uses $15,000 of direct materials, the following journal entry would be recorded by the process costing system:
$\begin{array}{l}\text { Work in Process Inventory, Department C } & 10,000 \\\text { Work in Process Inventory, Department D } & 15,000\\\text { Raw Materials Inventory }&&25,000\end{array}$

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Definitions:

Revenue Recognition Principle

The concept that supports recording revenues when services have been performed or products delivered to customers.

Cash

Money in the form of coins or banknotes held by an individual or organization, readily available for transactions.

Adjusting Entries

Bookkeeping entries executed at the termination of a financial period for the purpose of apportioning earnings and expenses to the actual period they took place.

Balance Sheet Accounts

Accounts appearing on the balance sheet, representing a company's assets, liabilities, and equity at a specific point in time.