ABC Produces Ping-Pong Balls Using a Three-Step Sequential Process That

question 24

Multiple Choice

ABC produces ping-pong balls using a three-step sequential process that includes molding, colouring and finishing. When the balls and associated costs are transferred out of the colouring process and into the finishing process, the journal entry would include a

• A) debit to WIP inventory- colouring and a credit to WIP-finishing.
• B) debit to WIP inventory- finishing and a credit to WIP-colouring.
• C) debit to Finished Goods inventory and a credit to WIP-colouring.
• D) debit to WIP inventory- colouring and a credit to Finished Goods inventory.

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Definitions:

S&P 500 Futures

Financial contracts that speculate on the future value of the S&P 500 index, allowing investors to predict and hedge against market movements.

Position

An investment holding or the amount of a particular security, commodity, or currency that an investor owns or has contracted to buy or sell.

Stock Index Futures

Are futures contracts where the underlying is a stock index, and they are used by investors to speculate on the future direction of the index's price or to hedge against potential index movements.

Multiplier

An economic factor that quantifies the effect of a change in one economic variable on another, for instance, how government spending affects national income.