Work-In-Process Inventory Would Normally Include ________

question 98

Multiple Choice

Work-in-process inventory would normally include ________.

• A) direct materials in stock and awaiting use in the manufacturing process
• B) goods partially worked on but not yet fully completed
• C) goods fully completed but not yet sold
• D) goods returned after being sold to be re-worked on further improvements and quality

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Definitions:

General Journal

A basic accounting record where all day-to-day financial transactions of a company are initially recorded in chronological order.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate period for an accurate financial statement.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost and dividends are recorded as income.

Elimination

The process in accounting of removing the effects of inter-company transactions to avoid double counting in consolidated financial statements.