The Accounts of Delphinia Dreams,Inc During the Month,direct Materials Amounting to $21,000 and Indirect Materials

question 22

Multiple Choice

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: $$\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\\hline \text { Raw Materials Inventory } & \$ 31,000 \\\hline \text { Work-in-Process Inventory } & 44,000 \\\hline \text { Finished Goods Inventory } & 54,000 \\\hline \text { Manufacturing Overhead } & 20,000 \\\hline\end{array}$$ During the month,direct materials amounting to $21,000 and indirect materials amounting to $6000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

• A) $44,000
• B) $65,000
• C) $10,000
• D) $26,000

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Definitions:

Voucher System

A set of procedures that uses vouchers for authorizing and recording liabilities and cash payments.

Internal Control

A process implemented by a company to ensure the integrity of financial and accounting information, meet operational and profitability targets, and transmit management policies throughout the organization.

Cash Payments

Transactions that involve the immediate outflow of cash to settle obligations or purchase goods and services.

Internal Control System

Procedures and processes implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.