ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information: Total materials (direct and indirect) purchased$90,000 Indirect materials issued to production 30,000 Total materials issued to production 110,000 Beginning materials inventory 50,000 The credit to the materials inventory account for materials used is: Multiple Choice $110,000. $30,000. $80,000. $90,000. $50,000.

Raw materials: It is the basic input required to manufacture the finished products. The raw…

Answered: ABC Company uses a Materials Inventory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information:


Total materials (direct and indirect) purchased	$	90,000
Indirect materials issued to production		30,000
Total materials issued to production		110,000
Beginning materials inventory		50,000

The credit to the materials inventory account for materials used is:

Multiple Choice

$110,000.
$30,000.
$80,000.
$90,000.
$50,000.

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