### Accounting Journal Entry Question**Current Attempt in Progress****Question 42 of 50***Which of the following is the correct journal entry to record direct materials put into production?*1. ☐ Finished Goods Inventory xx Work in Process Inventory xx2. ☐ Raw Materials Inventory xx Work in Process Inventory xx3. ☐ Work in Process Inventory xx Raw Materials Inventory xx4. ☐ Work in Process Inventory xx Finished Goods Inventory xx---In the context of accounting, this question seeks to evaluate the understanding of how to properly document the use of direct materials in the production process.#### Description of Options:- **Option 1:** - Debit: Finished Goods Inventory - Credit: Work in Process Inventory- **Option 2:** - Debit: Raw Materials Inventory - Credit: Work in Process Inventory- **Option 3:** - Debit: Work in Process Inventory - Credit: Raw Materials Inventory- **Option 4:** - Debit: Work in Process Inventory - Credit: Finished Goods InventoryTo record the movement of direct materials into production, the movement typically involves a debit to the Work in Process Inventory account and a credit to the Raw Materials Inventory account. This indicates that materials are being transferred from stored raw materials to work in process, which is a step before becoming finished goods.The correct option should therefore reflect this transaction appropriately in the journal entry:**Correct Answer:** Option 3- **Journal Entry:** - Debit: Work in Process Inventory (xx) - Credit: Raw Materials Inventory (xx)

Solution:- Preparation of journal entry to record direct material put into production as follows…

Which of the following is the correct journal entry to record direct materials put into production? Finished Goods Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Finished Goods Inventory XX

Which of the following is the correct journal entry to record direct materials put into production? Finished Goods Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Work in Process Inventory XX Raw Materials Inventory XX Work in Process Inventory XX Finished Goods Inventory XX

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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Similar questions

Manufacturing firms use which of the following three inventory accounts? A. Materials, Work-in-process, Transferred-out. B. Materials, Work-in-process, Finished goods. C. Materials, Finished goods, Transferred-out. D. Work-in-process, Finished goods, Transferred-out.
The component of a company's inventory that is partially completed is called direct raw materials inventory. Select one: True O False
1
Ef 13.
As production takes place, all material costs are added to the: Work-in-process Inventory account Manufacturing-Overhead inventory account Cost of goods sold account Finished goods inventory account
10-Identify the journal entry for abnormal wastage. a. Dr.Material inventory, Cr.Work in process inventory b. Dr.Costing profit and loss account, Cr.Work in process inventory c. Dr.Material inventory, Cr.Production overheads d. Dr.Production overheads, Cr.Work in process inventory
12. Which of the following entry rightly record for transferring goods from WIP to finished stock? a. A. Dr. Work in Process Inventory A/c Cr. Costing Profit and Loss A/c b. A. Dr. Work in Process Inventory A/c Cr. Finished Goods Inventory A/c c. A. Dr. Costing Profit and Loss A/c Cr. Work in Process Inventory A/c d. A. Dr. Finished Goods Inventory A/c Cr. Work in Process Inventory A/c
Present the journal entry for (b) manufacturing labor incurred.
Which of the following entries record the release of direct materials to productionin a job-order costing system?
Indirect material used in production is classified as __________. administration overhead selling overhead distribution overhead production overhead
Choose the journal entry 4. Record the cost of goods manufactured Dr Factory overhead; Cr Finished goods inventory Dr Work In process Inventory; Cr Finished goods Inventory Dr Finished goods inventory; Cr Work In process Inventory Dr Materials Inventory; Cr Work In process Inventory\ 5. Record the purchased Indirect Materials on account Dr Factory overhead inventory; Cr Accounts payable Dr Materials inventory; Cr Accounts payable Dr Factory overhead inventory; Cr Cash Dr Materials inventory; Cr Cash