Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

The journal entry to record the use of direct materials in process costing is a(n):

Debit to Work in Process and credit to Raw Materials

Debit to Finished Goods and credit to Work in Process

Debit to Raw Materials and credit to Work in Process

Debit to Manufacturing Overhead and credit to Raw Materials

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Verified step by step guidance

Understand the concept of process costing: Process costing is a method used to allocate costs to products in industries where production is continuous and units are indistinguishable from one another, such as chemicals or textiles.

Identify the accounts involved: In process costing, direct materials are transferred from the Raw Materials account to the Work in Process account as they are used in production.

Determine the journal entry structure: A journal entry must reflect the increase in Work in Process (debit) and the decrease in Raw Materials (credit) when direct materials are used.

Analyze the options provided: The correct journal entry should debit Work in Process and credit Raw Materials, as this reflects the movement of direct materials into production.

Review the purpose of other accounts mentioned: Finished Goods and Manufacturing Overhead are not directly involved in recording the use of direct materials in process costing, so these options can be eliminated.