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The following information applies to Questions 1 to 7.

The following transactions occurred in August at Barbara Cabinets, a custom cabinet firm:

1. Purchased $70,000 of materials on account.
2. Issued $3,000 of supplies from the materials inventory.
3. Purchased $50,000 of materials on account.
4. Paid for the materials purchased in transaction (1).
5. Issued $62,000 in direct materials to the production department.
6. Incurred direct labor costs of $115,000, which were credited to Wages Payable.
7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied manufacturing overhead on the basis of 125 percent of $100,000 direct labor costs.
9. Recognized depreciation on manufacturing property, plant and equipment of $50,000.

Question 1 - What is the journal entry to record (1) above?

Group of answer choices

A. Debit Accounts Payable $70,000, Credit Materials Inventory $70,000

B. Debit Cash $70,000, Credit Materials Inventory $70,000

C. Debit Materials Inventory $70,000, Credit Accounts Payable $70,000

D. Debit Materials Inventory $70,000, Credit Cash $70,000

The following information applies to Questions 1 to 7.

The following transactions occurred in August at Barbara Cabinets, a custom cabinet firm:

1. Purchased $70,000 of materials on account.
2. Issued $3,000 of supplies from the materials inventory.
3. Purchased $50,000 of materials on account.
4. Paid for the materials purchased in transaction (1).
5. Issued $62,000 in direct materials to the production department.
6. Incurred direct labor costs of $115,000, which were credited to Wages Payable.
7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied manufacturing overhead on the basis of 125 percent of $100,000 direct labor costs.
9. Recognized depreciation on manufacturing property, plant and equipment of $50,000.

Question 2 - What is the journal entry to record (2) above?

Group of answer choices

A. Debit Accounts Payable $3,000, Credit Manufacturing Overhead $3,000

B. Debit Cash $3,000, Credit Property, Plant and Equipment $3,000

C. Debit Materials Inventory $3,000, Credit Cash $3,000

D. Debit Manufacturing Overhead $3,000, Credit Materials Inventory $3,000

The following information applies to Questions 1 to 7.

The following transactions occurred in August at Barbara Cabinets, a custom cabinet firm:

1. Purchased $70,000 of materials on account.
2. Issued $3,000 of supplies from the materials inventory.
3. Purchased $50,000 of materials on account.
4. Paid for the materials purchased in transaction (1).
5. Issued $62,000 in direct materials to the production department.
6. Incurred direct labor costs of $115,000, which were credited to Wages Payable.
7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied manufacturing overhead on the basis of 125 percent of $100,000 direct labor costs.
9. Recognized depreciation on manufacturing property, plant and equipment of $50,000.

Question 3 - What is the journal entry to record (3) above?

Group of answer choices

A. No journal entry is recorded.

B. Debit Work-in-Process $50,000 and credit Accounts Receivable $50,000.

C. Debit Materials Inventory $50,000 and credit Accounts Payable $50,000.

D. Debit Cash $50,000 and credit Materials Inventory $50,000.

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