Answer the Following Questions Using the Information Below:
Wayland Manufacturing

question 9

Multiple Choice

Answer the following questions using the information below:
Wayland Manufacturing uses a normal cost system and had the following data available for 2010:
$\begin{array}{lr}\text { Direct materials purchased on account } & \$ 148,000 \\\text { Direct materials requisitioned } & 82,000 \\\text { Direct labor cost incurred } & 130,000\\\\\text { Factory overhead incurred } & 146,000 \\\text { Cost of goods completed } & 292,000 \\\text { Cost of goods sold } & 256,000\\\\\text { Beginning direct materials inventory } & 26,000 \\\text { Beginning WIP inventory } & 64,000 \\\text { Beginning finished goods inventory } & 58,000 \\\text { Overhead application rate, as a percent of direct-labor costs } & 125 \text { percent }\end{array}$
-The journal entry to record the materials placed into production would include a ________.

• A) credit to Direct Materials Inventory for $82,000
• B) debit to Direct Materials Inventory for $148,000
• C) credit to WIP Inventory for $82,000
• D) debit to WIP Inventory for $148,000

---

Definitions:

Adjusting Entry

Adjusting entries are journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period, highlighting operational performance.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales, calculated as net sales divided by average total assets.

Decrease Ratio

A financial metric that quantifies the reduction in a particular variable or metric relative to another, often used to assess performance or efficiency decline.