Answer the Following Question Using the Information Below:
Cronulla Products

Multiple Choice

Answer the following question using the information below:
Cronulla Products uses a normal cost system and had the following data available for 2018:
$$\begin{array} { l c } \text { Direct materials purchased on account } & \$ 74000 \\\text { Direct materials requisitioned } & 41000 \\\text { Direct labour cost incurred } & 65000 \\& \\\text { Factory overhead incurred } & 73000 \\\text { Cost of goods completed } & 146000 \\\text { Cost of goods sold } & 128000 \\& \\\text { Be ginning direct materials inventory } & 13000 \\\text { Beginning WIP inventory } & 32000 \\\text { Beginning firished goods inventory } & 29000 \\\text { Overhead application rate, } & \\\text { as a percent of direct-labour costs}&125 \text { percent } \end{array}$$
-The journal entry to record the materials placed into production would include a:

A) debit to WIP Inventory for $74 000.
B) debit to Direct Materials Inventory for $74 000.
C) credit to Direct Materials Inventory for $41 000.
D) credit to WIP Inventory for $41 000.