For Wharton Company the journal entry to record the cost of direct materials placed into production involves a

Question

Quizplus · Accepted Answer

The cost of direct materials placed into production is charged to the work in process inventory account. Therefore, the correct entry would be a debit to work in process inventory for $41,000. Options A and D are incorrect because there is no indication in the question that overhead or manufacturing overhead is involved in the transaction. Option B is incorrect because it overstates the cost of direct materials placed into production by $2,000.

For Wharton Company the Journal Entry to Record the Cost