A Review of a Company's Work-In-Process Inventory Account Found a Debit

question 77

Multiple Choice

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the firm:

• A) also recorded a credit to Raw-Material Inventory.
• B) also recorded a credit to Manufacturing Supplies Inventory.
• C) was accounting for the usage of direct materials.
• D) was accounting for the usage of indirect materials.
• E) also recorded a credit to Raw-Material Inventory and was accounting for the usage of direct materials.

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Definitions:

Futures Contract

A Futures Contract is a legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Delivery Date

In finance, specifically with futures contracts, it is the date on which the underlying asset must be delivered or received under the terms of the contract.

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Benchmarks that aggregate and measure the performance of bonds and fixed-income securities in a specific market segment or sector.