The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves a debit to what account(s)?

The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves a debit to what account(s)?

A) work in process inventory for $500 and a debit to manufacturing overhead for $30
B) work in process inventory for $500 and a credit to manufacturing overhead for $30
C) manufacturing overhead for $530
D) work in process inventory for $530


Answer: A

Direct materials flow directly into what account?

A) cost of goods sold
B) finished goods inventory
C) manufacturing overhead
D) work in process inventory


Answer: D

Allocation of direct and indirect materials requires a credit to what account?

A) materials inventory
B) manufacturing overhead
C) work in process inventory
D) finished goods inventory


Answer: A