Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
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Refer to Figure 6-1.The journal entry to record materials purchased would include a
A) debit to Materials Inventory for $40,000.
B) debit to Materials Inventory for $44,000.
C) credit to Accounts Payable for $44,000.
D) both b and c.

Question

Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
 Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
-
Refer to Figure 6-1.The journal entry to record materials purchased would include a
A) debit to Materials Inventory for $40,000. 
B) debit to Materials Inventory for $44,000. 
C) credit to Accounts Payable for $44,000. 
D) both b and c.

Quizplus · Accepted Answer

The Answer of Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
 Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
-
Refer to Figure 6-1.The journal entry to record materials purchased would include a
A) debit to Materials Inventory for $40,000. 
B) debit to Materials Inventory for $44,000. 
C) credit to Accounts Payable for $44,000. 
D) both b and c.

Figure 6-1 Allen Company Has the Following Information for the Assembly