The Placing of Direct Materials into the Production Process Is

question 88

Multiple Choice

The placing of direct materials into the production process is recorded by an entry crediting:

• A)Materials Expense.
• B)Raw Materials Inventory.
• C)Work in Process Inventory.
• D)Finished Goods Inventory.

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Definitions:

Production Output

The total quantity of goods and services produced in a given time period by a firm or country.

Cash Sales Policy

A cash sales policy is a business approach where transactions are conducted strictly on a cash basis, without offering credit to customers.

Discount Period

The discount period is the time frame in which a payment can be made at a discounted rate from the regular price or before it becomes due.

Percentage Cost

The cost of a financial transaction or investment expressed as a percentage of the total amount.