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

question 53

Multiple Choice

ABC produces ping pong balls using a three-step process that includes molding,coloring and finishing.The purchase of materials includes a:

• A)debit to raw materials inventory.
• B)debit to WIP inventory-molding.
• C)credit to manufacturing overhead.
• D)credit to raw materials inventory.

---

Definitions:

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated person.

Commercial Transactions

Business activities that involve the exchange of goods, services, or funds between enterprises or individuals.

Unusual Signature

A signature that deviates significantly from a person's usual style of signing, which can raise questions about authenticity or indicate special circumstances.

Marketability

The ease with which an asset or service can be sold or bought in the market, often because of demand, availability, or regulatory conditions.