Use the Following Information to Answer Questions

question 4

Multiple Choice

Use the following information to answer questions
Wells Inc.reported these transactions relating to marketable Trading Investments intended to generate net income and to be sold in the near term:

-The entry, if any is required, to record the value of the investment on December 31 would include a debit to

• A)Realized Losses for $450.
• B)Unrealized Loss for $750.
• C)No entry is required.
• D)Unrealized Losses of $450.

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Definitions:

Machine-Hours

A measure of production output or operation based on the number of hours machines are running.

Job-Order Costing

An accounting method where costs are assigned to specific jobs or batches, used in situations where products are distinctly different.

Selling Price

The amount of money charged for a product or service, determined by considering costs, market demand, competition, and profitability.

Unit Product Costs

The calculated cost assigned to a single unit of product, typically including direct materials, direct labor, and allocated overhead.