The Balance in White Company's Work in Process Inventory Account

question 21

Multiple Choice

The balance in White Company's Work in Process inventory account was $15,000 on August 1 and $18,000 on August 31.. If the sum of the debits to the Manufacturing Overhead account total $28,000 for the month, and if the sum of the credits totalled $30,000, then:

• A)Manufacturing Overhead was underapplied by $2,000 at the end of the month.
• B)Finished Goods was debited for $85,000 during the month.
• C)Finished Goods was debited for $82,000 during the month.
• D)Finished Goods was credited for $83,000 during the month.

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Definitions:

Rightful Owner

The individual or entity that legally possesses property or rights, typically recognized through ownership documents or legal actions.

Temporary Possession

The condition of holding or controlling property or goods for a limited period without claiming ownership.

Chattel

Assets that can be physically relocated, unlike immovable real estate or land.

Bailment

Temporary possession by one person of chattels owned by another.