The following partially completed T-accounts summarize transactions for Farwest Corporation during the year: The direct materials cost was:
A)$8,000
B)$10,000
C)$7,400
D)$4,600

Question

The following partially completed T-accounts summarize transactions for Farwest Corporation during the year:       The direct materials cost was:
A)$8,000 
B)$10,000 
C)$7,400 
D)$4,600

Quizplus · Accepted Answer

The key is to recognize that the 7,400 debit entry in the Work in Process account represents direct materials.The journal entry would have been:
 11eaa3fe_33bc_c077_908b_0713208b85d6_TB2461_00 The direct materials is the $7,400 debit to Work in Process.

The Following Partially Completed T-Accounts Summarize Transactions for Farwest Corporation