Asked by
Jyothi Tatikonda
on Oct 15, 2024
Verified
The journal entry to record the issuance of materials to production is:
A) Debit Raw Materials Inventory $153,000; credit Accounts Payable $153,000.
B) Debit Work in Process Inventory $140,000; debit Factory Overhead $24,000; credit Raw Materials Inventory $164,000.
C) Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000.
D) Debit Work in Process Inventory $140,000; debit Raw Materials Inventory $24,000; credit Materials Inventory $164,000.
E) Debit Finished Goods Inventory $140,000; credit Raw Materials Inventory $140,000.
Predetermined Overhead Rate
This is a rate used to apply manufacturing overhead to products or job orders and is established in advance based on estimated costs and activity levels.
Raw Materials Inventory
The total cost of all the materials that are used to make a product but have not yet been used in the manufacturing process.
- Detail transactions by making journal entries in a job order costing scenario.
- Understand the flow of costs in manufacturing (Materials, Labor, Overhead).
Verified Answer
JO
Learning Objectives
- Detail transactions by making journal entries in a job order costing scenario.
- Understand the flow of costs in manufacturing (Materials, Labor, Overhead).