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Firlakuza [10]
3 years ago
6

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials

from the controlling account in the general ledger to the controlling accounts for a.Work in Process and Finished Goods b.Finished Goods and Cost of Goods Sold c.Work in Process and Factory Overhead d.Work in Process and Cost of Goods Sold
Business
1 answer:
Anettt [7]3 years ago
4 0

Answer:

a.Work in Process and Finished Goods

Explanation:

The summary of materials requisitions shows all request for raw materials used for production.

When raw materials are obtained, they go into the factory where production begins. Raw material is converted to finished goods which are then sold.

The inventory that represents raw materials received in the factory is Work in progress and finished goods.

So when transferring cost of materials it should be transfered to work in progress and finished goods, as these accurately represent the converted raw material recieved.

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blagie [28]

Answer: e. Decreases asset and expense accounts, and increases liability, common stock, and revenue accounts.

Explanation:

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a. Is always a decrease in an account - This is false because a credit entry increases liability, common stock and revenue accounts.

b. Is recorded on the left side of a T-account - Although in modern day accounting, the use of T-account has been relegated to the background. However, if entries are to be recorded using the T-account, all debits are posted to the left side while all credits are recorded on the right side of the account.

c. Increases asset and expense accounts, and decreases liability, common stock, and revenue accounts - It does not increase asset and expense accounts, rather it reduces them. The opposite applies to liability, common stock, and revenue accounts.

d. Is always an increase in an account - This is false.

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