The Accounts of Delphinia Dreams Inc During the Month, Direct Materials Amounting to $20,000 and Indirect

question 45

Multiple Choice

The accounts of Delphinia Dreams Inc. showed the following balances at the beginning of October: $$\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\\hline \text { Raw Materials Inventory } & \$ 30,000 \\\hline \text { Work-in-Process Inventory } & 40,000 \\\hline \text { Finished Goods Inventory } & 50,000 \\\hline \text { Manufacturing Overhead } & 20,000 \\\hline\end{array}$$ During the month, direct materials amounting to $20,000 and indirect materials amounting to $5,000 was issued to production. What is the ending balance in the Work-in-Process Inventory account for the month of October?

• A) $40,000
• B) $60,000
• C) $20,000
• D) $25,000

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Definitions:

Grant

To agree to give or allow something requested to someone, often in the context of financial aid, rights, or property.

Real Property

Land and anything permanently attached to it, such as buildings and structures, distinct from personal property or movable possessions.

Tenancy

General term indicating a possessory interest in property. In landlord–tenant law, a property owner’s conveyance to another person of the right to possess the property exclusively for a period of time.

Estate

All the money, property, and assets owned by an individual at the time of their death, which may be subject to probate and taxation.