The Ending Merchandise Inventory (Using the Periodic System) Is Placed

question 33

Multiple Choice

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry

• A) debiting Merchandise Inventory and crediting Sales.
• B) debiting Income Summary and crediting Merchandise Inventory.
• C) debiting Merchandise Inventory and crediting Income Summary.
• D) debiting Purchases and crediting Merchandise Inventory.
• E) debiting Merchandise Inventory and crediting Purchases.

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead used as benchmarks for measuring performance.

Kilos

A unit of measurement equivalent to one thousand grams, used commonly across the world to denote mass in the metric system.

Raw Material

Basic substances in their natural, modified, or semi-processed states used as an input for a manufacturing process.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring actual performance and cost control.