Which of the Following Pair of Journal Entries Correctly Records

question 129

Multiple Choice

Which of the following pair of journal entries correctly records the current month's activity where $250,000 of raw material was purchased for cash and $150,000 of direct material and $60,000 of indirect materials were used in the production process?

• A)\(\begin{array}{llr}
• \text { Cash } &250,000\\
• \text {Raw Materials Inventory } &&250,000\\
• \\
• \text { Raw Materials Inventory} &210,000\\
• \text { Goods in Process Inventory } &&150,000\\
• \text {Factory Overhead } &&60,000\\
• \end{array}\)
• B)\(\begin{array}{llr}
• \text { Raw Materials Inventory } &250,000\\
• \text { Cash} &&250,000\\
• \\

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Definitions:

Societal Analysis

Societal analysis is the examination of a society's structures, relationships, and institutions to understand its complexities, dynamics, and the factors that drive changes within it.

Economic Productivity

measures the efficiency of production in an economy, often calculated as the ratio of output to inputs in the production process.

Inflation

The economic condition characterized by a general increase in prices and fall in the purchasing value of money.

Quintile Distribution

A statistical measure used to divide a population into five equal groups based on a particular variable, such as income.