Question
Lamas Corp. was incorporated in January 2016, Sendy Ford, president of the company, provided the following data related to the inventory of materials for the
Lamas Corp. was incorporated in January 2016, Sendy Ford, president of the company, provided the following data related to the inventory of materials for the month of June 2014.
January 02. Cash purchase; 5,000 units of direct materials at a cost of L. 25 each and 1,000 units of indirect materials at L. 0.80 each.
January 05 In production, 2,500 units of direct material were used.
January 20 10 units of indirect material are used in production .
The accounting record to account for the transaction on January 1 is as follows:
to. | Work in process inventory L. 125,000.00 Material inventory L. 125,000.00 | |
b. | Material inventory L. 125,800 Box L. 125,800 | |
c. | Control CIF L. 125,800 Material inventory L. 125,800 |
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
