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

question 168

Multiple Choice

Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for conversion costs?

• A)WIP Inventory-Finishing
• B)Finished Goods Inventory
• C)Raw Materials Inventory
• D)Cost of Goods Sold

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Definitions:

Net Sales

Revenue from goods or services sold, subtracting returns, allowances for damaged or missing goods, and discounts.

Bank Reconciliation

The process of verifying the balance of a company's bank accounts with their financial records, identifying any discrepancies that may exist.

Purpose

Purpose refers to the reason for which something is done or created or for which something exists.

General Journal Entry

A record in accounting that notes the debit and credit transactions affecting financial statements.