Fact Pattern 21-1

question 55

Multiple Choice

Fact Pattern 21-1
In January, Jazz Dance Studio owes Kay, its musical director, $1,800 for cur¬rent wages, receives $700 as a down payment for dance lessons from Lora, and pays a Music, Inc., a sheet music supplier, $1,500 of $3,000 owed. In February, the studio files for bankruptcy under Chapter 7.
-Refer to Fact Pattern 21-1.The highest priority belongs to

Definitions:

Shipping Costs

Expenses incurred from transporting goods from seller to buyer.

Finished Milk Chocolate Bars

The final product of a chocolate manufacturing process, ready for packaging and sale to consumers.

Work In Process Inventory

Materials and products that are in the process of being manufactured but are not yet complete.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for manufacturing processes.