1. Which of the following journal entries correctly records the current month's activity where $60,000 of direct material and $17,000 of indirect materials were used in the production process? 2. Direct labor and indirect labor arc recorded, respectively, to:

A. Factory Overhead and Goods in Process.

B. Goods in Process and Finished Goods.

C. Finished Goods and Goods in Process.

D. Goods in Process and Factory Overhead.

E. Cost of Goods Sold and Finished Goods.

3. After posting all actual factory overhead and applying factory overhead to production departments in a process costing system:

A. There will never be underapplied overhead.

B. There will never be overapplied overhead.

C. There will always be underapplied overhead.

D. There will always be overapplied overhead.

E. There may be over or underapplied overhead.

Transcribed Image Text:

A.. B. C. Raw Materials Inventory Goods in Process Inventory Factory Overhead E. Goods in Process Raw Materials Inventory Goods in Process Factory Overhead Cash D. Goods in Process Factory Overhead Raw Materials Inventory Raw Materials Inventory Cash 77,000 77,000 17,000 60,000 60,000 17,000 77,000 60,000 17,000 77,000 77,000 77,000 77,000 A.. B. C. Raw Materials Inventory Goods in Process Inventory Factory Overhead E. Goods in Process Raw Materials Inventory Goods in Process Factory Overhead Cash D. Goods in Process Factory Overhead Raw Materials Inventory Raw Materials Inventory Cash 77,000 77,000 17,000 60,000 60,000 17,000 77,000 60,000 17,000 77,000 77,000 77,000 77,000

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1 Direct Materials used in production process Goods in process and decreases ... View the full answer