25) Nevada Manufacturing has two processing departments, Department I and Department II. The raw materials processed at Department I are sent to Department II for further processing. During June, direct materials worth $50,000 purchased on account were assigned to Department I. The journal entry to record issue of direct materials to production is: A) debit Work-in-Process Inventory-Department I, $50,000; credit Raw Materials Inventory, $50,000. B) debit Work-in-Process Inventory-Department I, $50,000; credit Accounts Payable, $50,000. C) debit Accounts Payable, $50,000; credit Work-in-Process Inventory-Department I, $50,000. D) debit Raw Materials Inventory, $50,000; credit Work-in-Process Inventory-Department I, $50,000. 26) are costs incurred after the company delivers poor-quality goods or services to customers and then has to make things right with the customer. A) Prevention costs C) External failure costs B) Internal failure costs D) Appraisal costs 27) Which of the following statements is true of just-in-time management systems? A) It involves ordering raw materials in large quantities to obtain volume discounts. B) Its successful implementation is independent of vendor relationships. C) It triggers production after the customer places an order. D) It contracts with suppliers to deliver large quantities of goods once a year. 28) Dunby Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single plantwide rate with direct labor hours as the allocation base. The estimated indirect costs for this year amount to $150,000. The company is expected to work for 5,000 direct labor hours during the year. The direct labor rate is $250 per hour. Clients are billed at 140% of direct labor cost. Last month, Dunby's consultants spent 175 hours on Xyme Inc. Calculate the total cost assigned to Xyme. 25) 26 27 A) $38,500 B) $49,000 C) $61,250 D) $43,750