What Is the Appropriate Journal Entry If $150 000 of Materials

question 196

Short Answer

What is the appropriate journal entry if $150 000 of materials were purchased on account for the month of August?
A)
$\begin{array} { l c c } \text { Manufacturing Allocated } & 150000 \\\text { Accounts Receivable Control } && 150000 \\\end{array}$

B)
$\begin{array} { l c c } \text { Manufacturing Overhead Control } & 150000 \\\text { Accounts Receivable Control } && 150000 \\\end{array}$

C)
$\begin{array} { l c c } \text { Materials Control } & 150000 & \\\text { Accounts Payable Control } & & 150000 \\\end{array}$

D)
$\begin{array} { l c c } \text { Work-in-Process Control } & 150000 & \\\text { Accounts Payable Control } & & 150000\end{array}$

Identify the components of the strategic planning process and the importance of control systems.

Understand the importance of a code of ethics being supported and enforced by management.

Recognize the role of competitive advantages and strategies in business sustainability and growth.

Distinguish between internal and external analyses in strategic planning and their impacts on identifying competitive advantages.

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Definitions:

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Incremental Project Cash Flows

The additional cash inflows or outflows expected from undertaking a specific project, excluding any cash flows not directly attributable to the project itself.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment, representing the difference between the present value of cash inflows and outflows.

IRR

A metric used in financial analysis to estimate the profitability of potential investments, it represents the annualized effective compounded return rate.