Data from Estrin Corporation's Most Recent Balance Sheet and Income

question 12

Multiple Choice

Data from Estrin Corporation's most recent balance sheet and income statement appear below: The average sale period for this year is closest to:

• A)101 days
• B)50 days
• C)108 days
• D)45 days

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Definitions:

Work-in-Process Inventory

Goods partially worked on but not yet completed; an inventory account that tracks the value of materials and labor input into products that are in the production process.

Direct Labor Dollars

The total amount of money paid to workers who are directly involved in manufacturing a product or delivering a service.

Manufacturing Overhead-Applied

The portion of manufacturing costs not directly associated with the production of goods that are assigned to units produced.

Overhead-Applied Account

Refers to an account where the applied (estimated) manufacturing overhead costs are accumulated.