Indicate Whether the Following Items Would Be Reported as an Operating

question 20

Essay

Indicate whether the following items would be reported as an operating cost or an unusual item in Kelly Corporation's income statement.If it is not unusual, state how the item should be recorded in the income statement.
A) Loss attributable to labour strike.B) Loss on sale of mining equipment.
C) Gain on the disposition of the company's retail operations.D) Loss from sale of FVTOCI securities.
E) Expropriation of property by a foreign government.

• A) Loss attributable to labour strike.B) Loss on sale of mining equipment.
• C) Gain on the disposition of the company's retail operations.D) Loss from sale of FVTOCI securities.
• E) Expropriation of property by a foreign government.

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Definitions:

Work in Process Inventory

Refers to the unfinished goods in a manufacturing process that are not yet completed but are in the stage of being turned into finished products.

Cost of Goods Sold

The direct costs attributed to the production of the goods sold by a company, including materials and labor.

Raw Material Inventory

The total stock of basic materials awaiting processing into finished goods within a manufacturing or production facility.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold.