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

question 158

Multiple Choice

ABC produces ping-pong balls using a three-step process that includes molding,colouring and finishing.Which of the following accounts is credited when material requests are filled?

• A)Finished goods inventory
• B)WIP inventory-finishing
• C)Manufacturing overhead
• D)Raw materials inventory

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Definitions:

Long-term Unsecured Credit

A type of loan given based on the borrower's creditworthiness without the need for collateral, typically with a repayment period beyond one year.

Commercial Paper

A short-term, unsecured debt instrument issued by companies to finance their immediate operational needs.

Short-term Borrowing

Loans or debt obligations that are expected to be paid back within a short period, typically less than one year, often used for operational expenses.

Carrying Costs

Expenses associated with holding or storing inventory over a period of time, including insurance, storage, and depreciation.