The Total Amount of Patent Cost Amortized to Date Is

question 21

Multiple Choice

The total amount of patent cost amortized to date is usually

• A)shown in a separate Accumulated Patent Amortization account which is shown contra to the Patent account.
• B)shown in the current income statement.
• C)reflected as credits in the Patent account.
• D)reflected as a contra property, plant and equipment item.

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Definitions:

Work in Process

Refers to the cost of the unfinished goods in the manufacturing process including labor, material, and overhead.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity purchased or used.

Raw Materials

Basic materials used in the production or manufacturing process, before being transformed into finished goods.

Work in Process

Goods that are in the midst of being produced, representing inventory that is not yet fully completed.