River Falls Manufacturing Uses a Normal Cost System and Had

question 86

Multiple Choice

River Falls Manufacturing uses a normal cost system and had the following data available for 2018:



The journal entry to record the materials placed into production would include a ________.

• A)credit to Direct Materials Inventory for $84,000
• B)debit to Direct Materials Inventory for $150,000
• C)credit to WIP Inventory for $84,000
• D)debit to WIP Inventory for $150,000

---

Definitions:

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Cash Flows

The total amount of cash being transferred into and out of a business, after all revenues and expenses have been accounted for.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

Investing Section

A part of the cash flow statement that shows the cash flow from all investing activities, which typically include purchases or sales of long-term assets like property, plant, and equipment.