Flying High Manufacturing Produces Frisbees Using a Three-Step Sequential Process

question 115

Multiple Choice

Flying High Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred from the molding process to the coloring process, which account is debited?

• A)WIP Inventory-Molding
• B)WIP Inventory-Coloring
• C)Raw Materials Inventory
• D)WIP Inventory-Finishing

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Definitions:

Holder in Due Course

A legal term describing someone who has obtained a negotiable instrument in good faith and for value, thus having certain protections.

Faulty Device

An apparatus or piece of equipment that has a defect or a malfunction.

Negligence

A legal concept indicating failure to exercise the level of care that a reasonable person would in similar circumstances, leading to unintended harm to others.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract.