If Department Q Uses $60,000 of Direct Materials and Department

question 140

True/False

If Department Q uses $60,000 of direct materials and Department T uses $15,000 of direct materials, the following journal entry would be recorded by the process cost accounting system:

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Definitions:

Valid Receipts

Official documents or records that acknowledge the receipt of goods, services, or payments and serve as proof of transactions.

Auxiliary Petty Cash Record

An ancillary log kept to track petty cash transactions separately from the main cash records for better management and reconciliation.

Petty Cash Voucher

A document used to log and authorize the use of petty cash funds for small, incidental expenses.

Cash Short

A situation where the recorded cash amount is less than the expected amount, often due to errors or theft.