Clarksen Company Uses a Process Costing System

question 115

Multiple Choice

Clarksen Company uses a process costing system. The company requisitioned $93,000 of materials for Department A and $67,000 of materials for Department D. The entry to record the use of the direct materials by these two departments is:

• A) Debit Work in Process Inventory-Dept. A $93,000; debit Work in Process Inventory-Dept. D $67,000; credit Accounts Payable $160,000.
• B) Debit Raw Materials Inventory-Dept. A $93,000; debit Raw Materials Inventory-Dept. D $67,000; credit Work in Process Inventory $160,000.
• C) Debit Factory overhead $160,000; credit Raw Materials Inventory $160,000.
• D) Debit Work in Process Inventory-Dept. A $93,000; debit Work in Process Inventory-Dept. D $67,000; credit Raw Materials Inventory $160,000.
• E) Debit Raw Materials Inventory $160,000; credit Accounts Payable $160,000.

Understand how various transactions affect both sides of the accounting equation.

Analyze the impact of stock issuance and investments on stockholders' equity and assets.

Identify the effects of purchasing assets with cash or financing on the balance sheet.

Comprehend the treatment of stockholders' equity in different transactions.