Fun Stuff Manufacturing Produces Frisbees Using a Three-Step Sequential Process

question 26

Multiple Choice

Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding,coloring and finishing.When the frisbees and associated costs are transferred out of the coloring process and into the finishing process,the journal entry would include a

• A)debit to WIP Inventory-Coloring and a credit to WIP-Finishing.
• B)debit to Finished Goods Inventory and a credit to WIP Coloring.
• C)debit to WIP Inventory-Finishing and a credit to WIP Coloring.
• D)debit to WIP Inventory-Coloring and a credit to Finished Goods Inventory.

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Definitions:

Sue for Damages

The act of bringing a legal action against someone in order to seek monetary compensation for harm or injury suffered.

Breach of Warranty

A Breach of Warranty occurs when a guarantee or promise about a product or service's condition, quality, or performance is not met, leading potentially to remedies such as repair, replacement, or compensation.

Exemption Clauses

Provisions in a contract that limit or exclude one party’s liability under certain circumstances.

Frustrated Contracts Act

Legislation that addresses situations where a contract, through no fault of the parties involved, cannot be fulfilled.