Answered: Which of the following accounts is used…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Which of the following accounts is used to monitor the products that are still in production on the balance sheet date, but have not yet become final (products) but have received a share from the raw materials and materials, labor costs and general production expenses ?

a)	157 Other Stocks Hs.

B)	150 Primary Materials and Materials Hs.

NS)	151 Semi-Finished Products Hs.

D)	153 Commercial Goods Hs.

TO)	152 Products Hs.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step 1

Lets first understand the meaning of work in progress / Semi finished goods.

Semi finished goods/WIP is a type of goods in the factory which is partially completed and still in the production.

These goods cost at the balance sheet date calculated based on the percentage of completion on the balance sheet date of input i.e. Direct material, Direct labor, general expenses etc.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions