The Final Step in Recognizing the Completion of Production Requires

question 52

Multiple Choice

The final step in recognizing the completion of production requires a company to:

• A)debit Finished-Goods Inventory and credit Work-in-Process Inventory.
• B)debit Work-in-Process Inventory and credit Finished-Goods Inventory.
• C)add direct labour to Work-in-Process Inventory.
• D)add direct materials, direct labour, and manufacturing overhead to Work-in-Process Inventory.
• E)add direct materials to Finished-Goods Inventory.

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Definitions:

Compounded Annually

A method of calculating interest in which the accumulated interest is added to the principal sum at the end of each year, increasing the amount of interest earned in subsequent years.

Equal Payments

A method of recurring payment where the same amount is paid in each period, commonly used in loans and leases.

Compounded Semiannually

This term refers to the process of calculating interest on a principal amount where the interest is added to the principal to compute further interest, occurring twice a year.

Loan

A sum of money borrowed that is expected to be paid back with interest.