Which of the Following Journal Entries Correctly Records the Current

question 75

Multiple Choice

Which of the following journal entries correctly records the current month's activity where $60,000 of direct material and $17,000 of indirect materials were used in the production process?

• A)\(\begin{array}{llr}
• \text { Raw Materrals Inventory } &77,000\\
• \text { Goods in Process Inventory } &&60,000\\
• \text {Factory Overhead } &&17,000
• \end{array}\)
• B)\(\begin{array}{llr}
• \text {Goods in Process } &77,000\\
• \text { Raw Materials Inventory } &&77,000\\
• \end{array}\)
• C)\(\begin{array}{ll}
• \text { Goods in Process } & 17,000 \\
• \text { Factory Overhead } & 60,000\\
• \text { cash }&&77,000
• \end{array}\)
• D)\(\begin{array}{l}
• \text { Goods in Process } & 60,000 \\
• \text { Factory Overhead } & 17,000\\
• \text { Raw Materials Inventory}&&77.00
• \end{array}\)
• E)\(\begin{array}{llr}
• \text { Raw Materials Inventory } &77,000\\
• \text { Cash } &&77,000\\
• \end{array}\)

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Definitions:

General Journal

A primary accounting record used to record all business transactions not specifically assigned to a special journal.

Subsidiary Ledgers

Detailed ledgers that contain information about specific accounts, which then summarize into a control account in the general ledger.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to creditors for goods or services received.

Accounts Receivable

Funds that customers owe to a business for goods or services that have been provided but remain unpaid.