The Entry to Record the Use of Direct Materials in Production

question 160

Multiple Choice

The entry to record the use of direct materials in production would include a

• A) debit to WIP inventory.
• B) debit to raw materials inventory.
• C) debit to finished goods inventory.
• D) credit to finished goods inventory.

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Definitions:

Elements

In accounting, elements refer to the basic categories of financial data that are classified in the financial statements, such as assets, liabilities, equity, revenue, and expenses.

Cash Receipts

Money received by a business or organization, including payments from customers, refunds, and interest earned.

Cash Sales

Transactions in which payment for goods or services is made at the time of sale, typically in cash or equivalent means.

Cash Register

A mechanical or electronic device for registering and calculating transactions at a point of sale.