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

question 201

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 for direct labour used during the molding process?

• A) WIP inventory-molding
• B) Manufacturing overhead
• C) Raw materials inventory
• D) Wages payable

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Definitions:

Mixed Costs

Expenses that contain both fixed and variable components, changing in total with the level of activity but also containing a constant component.

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume, such as materials and labor costs.

High-Low Data

A method used in various analyses that involves observing the highest and lowest data points to assess trends or calculate variables.

Units Produced

The total quantity of units manufactured by a company during a specific period.