Answer:
B. debit to WIP inventory
Explanation:
The journal entry to record the usage of direct material in production is
Work in Process Inventory Dr.
To Raw Material Inventory
(Raw materials consumed recorded)
Raw material inventory is an asset. It's consumption should reduce it's balance. A debit increases an asset's balance while a credit reduces it's balance.
Work in process, like raw material is an inventory account i.e an asset. A debit increases their balance whereas a credit reduces it.
Here, raw materials i.e direct material have been issued for production, which would reduce their balance and increase the balance of work in process as finished goods are yet to be made.
$6.00 + 1.50(x) ≤ $12.00
1.50 x ≤ $12 - 6
1.50 x ≤ 6
x = 6.00÷1.50
x= 4 hours
Answer:
No entry required
However, the balance sheet must be adjusted to represent both, the 4,000,000 inventory and the 4,000,000 accounts payable
Explanation:
As the account involved:
Inventory and accounts payable are permanent account do not alter the net income for the year ended December 31th 2020.
Also as no cash is involve the cash statement is not affected too.
This delay on recording generate no problem for the accounting.
Before government approves a merger, the company must be able to prove that the merger would lower costs and consumer prices or leads to a better product and service. A merger occur when a company joins another company or companies to form a single firm. Merger give companies the opportunity to pool their resources together and achieve better results in term of their products, services and also profits.
