The Accounts of Delphinia Dreams,Inc

question 92

Multiple Choice

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October:

During the month,direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

• A)$42,000
• B)$64,000
• C)$10,000
• D)$25,000

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Definitions:

Process Costing System

An accounting methodology that accumulates and assigns costs to large volumes of identical or similar units of output.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Journal Entry

A record in the accounting ledger that represents a single transaction and its effect on accounts.

Process Costing System

An accounting method used for homogenous products, allocating production costs based on the processes or departments through which the products pass.