Dentlinger Company uses a job-order cost system and had the following data available for 20X2.

-The journal entry to record the materials placed into production would include a
A) credit to Direct-Materials Inventory for $164,000.
B) debit to Direct-Materials Inventory for $296,000.
C) credit to WIP Inventory for $164,000.
D) debit to WIP Inventory for $296,000.

Question

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
 
-The journal entry to record the materials placed into production would include a
A) credit to Direct-Materials Inventory for $164,000. 
B) debit to Direct-Materials Inventory for $296,000. 
C) credit to WIP Inventory for $164,000. 
D) debit to WIP Inventory for $296,000.

Quizplus · Accepted Answer

When materials are placed into production, the Direct-Materials Inventory account is credited to decrease it, reflecting the usage of materials.

Dentlinger Company Uses a Job-Order Cost System and Had the Following