Which Accounts Are Increased by Debits

question 74

Multiple Choice

Which accounts are increased by debits?

• A)Cash and Accounts Payable.
• B)Salaries Expense and Common Stock.
• C)Accounts Receivable and Utilities Expense.
• D)Accounts Payable and Service Revenue.

Understand the calculation of equivalent units of production using both FIFO and weighted average methods.

Grasp the financial impact of direct and indirect labor and materials costs in process costing systems.

Identify and describe the flow of costs in a process costing system, including materials, labor, and overhead.

Apply process costing methods to compute the costs of completed and transferred units as well as ending Work in Process inventory.

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Definitions:

FIFO Method

The First-In, First-Out method is an inventory valuation technique where the costs of the earliest goods purchased are the first to be recognized in cost of goods sold.

Earliest Units

The first units produced or acquired in a period, which are often accounted for differently in inventory costing methods.

Cost Of Goods Sold

The total cost directly associated with producing goods sold by a business, including materials and labor.

Perpetual Inventory System

An inventory system under which the company keeps detailed records of the cost of each inventory purchase and sale, and the records continuously show the inventory that should be on hand.