Which of the Following Statements About Inventory Is Not Correct

question 32

Multiple Choice

Which of the following statements about inventory is not correct -

• A)you can change the default price when you purchase inventory
• B)you can change the default price when you sell inventory
• C)you can change the default asset account when you purchase inventory
• D)you can change the default revenue account when you sell inventory

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Definitions:

Work In Process Inventory

Goods partially completed in the manufacturing process, not yet ready for sale.

Units Transferred Out

The complete quantity of units that have moved through a production process and are sent out from a specific department or the entire production system.

Processing Department

A section within a manufacturing facility where specific types of operations or treatments are carried out on products.

First-In, First-Out Method

An inventory valuation method where the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory value.