ABC Company uses a Materials Inventory account to record both direct and indirect materials.Overhead is applied to production.During the month of April,the company has the following cost information:
The debit to Work-in-Process Inventory account is:

Question

ABC Company uses a Materials Inventory account to record both direct and indirect materials.Overhead is applied to production.During the month of April,the company has the following cost information: 
The debit to Work-in-Process Inventory account is:

Quizplus · Accepted Answer

The Work-in-Process Inventory account is debited for the total cost incurred in the production process. In this case, the total cost incurred during the month of April is $90,000 (direct materials $30,000 + direct labor $20,000 + manufacturing overhead $40,000). Therefore, the correct answer is C) $90,000.

ABC Company Uses a Materials Inventory Account to Record Both