The Accounts of Delphinia Dreams Inc

question 143

Multiple Choice

The accounts of Delphinia Dreams Inc. showed the following balances at the beginning of October: During the month, direct materials amounting to $20,000 and indirect materials amounting to $5,000 was issued to production. What is the ending balance in the Work-in-Process Inventory account for the month of October?

• A)$40,000
• B)$60,000
• C)$20,000
• D)$25,000

---

Definitions:

Project's Liquidity

The ease with which a project's assets can be converted into cash without significant loss of value.

Discount Rate

The discount rate employed to ascertain the present worth of forthcoming cash flows in an analysis of discounted cash flow.

NPV

Net Present Value; the calculation of the present value of cash inflows minus the present value of cash outflows over a period.

Cash Flows

The movement of money into and out of a business, representing its operating, investing, and financing activities.