Direct Materials Used in Production, Direct Labor, and Applied Overhead

question 121

Multiple Choice

Direct materials used in production, direct labor, and applied overhead are charged to the:

• A) raw materials account.
• B) overhead account.
• C) work in process account.
• D) indirect labor account.

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Definitions:

Original Principal

The initial amount of money borrowed or invested, before any interest or profit is added.

Compounded Annually

Interest calculated on the initial principal and the accumulated interest from the past year added together once per year.

Term Deposit

A type of bank deposit that has a fixed term and typically offers a higher interest rate than a regular savings account.

Interest Rate

The percentage of a sum of money charged for its use.