Work-In-Process Inventory Is Composed Of

question 26

Multiple Choice

Work-in-process inventory is composed of:

• A)direct material and direct labor.
• B)direct labor and manufacturing overhead.
• C)direct material and manufacturing overhead.
• D)direct material,direct labor,and manufacturing overheaD.
• E)direct material only.

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Definitions:

Liabilities

Financial obligations of a business, including money owed to creditors or suppliers.

Financial Instrument

Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Bank Overdraft

A facility that allows an individual or business to withdraw more money from a bank account than has been deposited, up to an agreed limit.

Notes Payable

A liability represented by a written promise to pay a specific sum of money, usually with interest, by a specified date.