Figure 6-1 the Sinbad Company Has the Following Information for the Assembly

question 24

Multiple Choice

Figure 6-1 The Sinbad Company has the following information for the Assembly Department for October 2014:
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
Refer to Figure 6-1. The journal entry to record materials purchased would include a

• A) debit to Materials Inventory for $45,000.
• B) debit to Materials Inventory for $49,000.
• C) credit to Accounts Payable for $49,000.
• D) both b and c.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment in comparison to other investments.

Net Operating Income

A company's income after operating expenses are deducted, but before income taxes and interest are deducted.

Average Operating Assets

The average value of the assets used in the normal operating activities of a business over a specific period.

Return On Investment

A measure of the profitability of an investment, calculated as a percentage of the return divided by the cost of the investment.