The Journal Entry to Record $1600 of Direct Labor and $200

question 184

Multiple Choice

The journal entry to record $1600 of direct labor and $200 of indirect labor incurred will include debit(s) to the ________.

• A) Manufacturing Overhead account for $1800
• B) Work-in-Process Inventory account for $1600 and Finished Goods Inventory account for $200
• C) Finished Goods Inventory account for $1800
• D) Work-in-Process Inventory account for $1600 and Manufacturing Overhead account for $200

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Definitions:

Law of Diminishing Marginal Utility

An economic principle that states the additional satisfaction a consumer gets from purchasing one more unit of a product will lessen with each additional unit purchased.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a specific quantity of goods or services.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.