During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a:
A. debit to Work in Process of $83,000
B. debit to Work in Process of $79,000
C. debit to Raw Materials of $83,000
D. credit to Manufacturing Overhead of $4,000
Answer: B
You might also like to view...
A marketer is most likely to set prices according to a cash-flow objective when a
A. trial-and-error approach to the market is acceptable. B. certain market share must be maintained. C. quick return on investment is desired. D. higher price is acceptable to the firm. E. product is expected to have a long life cycle.
Which of the following statements best describes the legal organization of mutual funds?
A) Funds are organized as a single entity that handles all functions such as custody and investment decisions. B) Funds split their basic functions such as record keeping and investment decisions among two or more companies. C) Funds are owned by the company that manages them. D) A distributor keeps track of investment and redemption requests from shareholders and maintains other shareholder records.
Special Sports Store, which uses the FIFO method of valuing inventory, has 60 tennis rackets remaining in inventory. Special purchased tennis rackets over a three-month period as follows: 36 purchased at $15 on January 3, 48 purchased at $15.50 on February 5, and 24 purchased at $16 on March 7 . Compute the value of the ending inventory of tennis rackets at FIFO cost
An increasing average receivables collection period indicates
A) the firm is generating more income. B) accounts receivable are going down. C) the company is becoming more efficient in its collection policy. D) the company is becoming less efficient in its collection policy.