Answer the Following Question Using the Information Below:
Cronulla Products

question 31

Multiple Choice

Answer the following question using the information below:
Cronulla Products uses a normal cost system and had the following data available for 2018:
$$\begin{array} { l c } \text { Direct materials purchased on account } & \$ 74000 \\\text { Direct materials requisitioned } & 41000 \\\text { Direct labour cost incurred } & 65000 \\& \\\text { Factory overhead incurred } & 73000 \\\text { Cost of goods completed } & 146000 \\\text { Cost of goods sold } & 128000 \\& \\\text { Be ginning direct materials inventory } & 13000 \\\text { Beginning WIP inventory } & 32000 \\\text { Beginning firished goods inventory } & 29000 \\\text { Overhead application rate, } & \\\text { as a percent of direct-labour costs}&125 \text { percent } \end{array}$$
-The journal entry to record the materials placed into production would include a:

• A)debit to WIP Inventory for $74 000.
• B)debit to Direct Materials Inventory for $74 000.
• C)credit to Direct Materials Inventory for $41 000.
• D)credit to WIP Inventory for $41 000.

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Definitions:

Customer Expectations

The set of assumptions or beliefs about what services or products a company will provide and how they will be delivered, which influence customer satisfaction.

Organizational Metrics

Quantitative measures used to assess and track the performance and effectiveness of an organization.

Satisfied Customers

Individuals who have purchased a product or service and have their expectations met or exceeded by the experience.

New Sales

Revenue or transactions generated from selling products or services that are newly introduced to the market.