The Balance in the Work in Process Inventory at Any

question 119

Multiple Choice

The balance in the Work in Process Inventory at any point in time equals

• A)the costs for jobs finished during the period but not yet sold.
• B)the manufacturing cost of jobs ordered but not yet started into production.
• C)the sum of the manufacturing costs for all jobs in process but not yet completed.
• D)the manufacturing costs of all jobs started during the period,completed or not.
• E)the sum of the materials,labor and overhead costs paid during the period.

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Definitions:

Profit Margin

A financial performance ratio that shows the percentage of profit a company makes for each dollar of sales.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Sales

The activities involved in selling products or services in return for money or other compensation.

Residual Income

The amount of income that an entity has after all personal debts and expenses have been paid, often used in personal finance, or an approach to measure a department's or investment's profitability after charging cost of capital.