Depletion of a Natural Resource Is Typically Recorded as a

question 42

Multiple Choice

Depletion of a natural resource is typically recorded as a

• A)debit to an inventory account
• B)debit to Depletion Expense
• C)debit to Cost of Goods Sold
• D)debit to Accumulated Depletion

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Definitions:

Equivalent Units

A measure used in cost accounting to express the amount of work done on partially finished goods in terms of fully completed units.

Direct Materials

Raw materials that are consumed in the manufacturing process, directly incorporated into the finished product.

Direct Labor

The cost of wages and benefits for the employees directly involved in the production of goods or services.

Process Cost Systems

A method in accounting used to track the costs associated with producing products in continuous processes.