Which of the Following Statements Regarding Work in Process Is

question 66

Multiple Choice

Which of the following statements regarding work in process is not correct?

• A)Work-in-process is partially completed inventory.
• B)Work-in-process consists of direct labour, direct material, and manufacturing overhead.
• C)Work-in-Process Inventory is debited to record direct material used and direct labour incurred.
• D)Work-in-Process Inventory appears on the year-end balance sheet.
• E)Work-in-Process Inventory is credited when goods are sold.

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Definitions:

Capital Fund

A fund dedicated to financing long-term investment projects or for acquiring fixed assets.

Unrestricted Contribution

Donations or funding received without stipulations on how they must be spent, allowing the recipient discretion in their use.

Useful Life

The expected period of time during which an asset is useful to the average owner and can generate income or benefits.

Capital Fund

Resources accumulated by an entity to finance long-term projects or investment, not intended for regular operational expenses.