Suppose That Finished Units Are Now in the Last (Final)

question 20

Multiple Choice

Suppose that finished units are now in the last (final) department. To which account will the cost of the finished units flow from the Work-in-Process Inventory account?

• A) Sales
• B) Expenses
• C) Cost of Goods Sold
• D) Finished Goods Inventory

---

Definitions:

Legally Binding Contract

An agreement between two or more parties that is enforceable by law, usually requiring an offer, acceptance, and consideration.

Disaffirmance

The legal cancellation or voiding of a contract or agreement, often due to one party's lack of capacity or discovery of a significant mistake.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement.

Restitution

An act of restoring or paying compensation for loss or damage to the original state or owner.