(Learning Objective 1) Which of the following types of companies would have work in process inventory? a. Service b. Merchandising c. Manufacturing d. All of the above

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Answer 1

Textbook Question

Chapter 2, Problem 1QC

(Learning Objective 1) Which of the following types of companies would have work in process inventory?

a. Service
b. Merchandising
c. Manufacturing
d. All of the above

Expert Solution & Answer

To determine

To-identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Manufacturing companies would have work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service Companies

They deal in intangibles, so generally do not have inventories.

b. Merchandising Companies

They resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.

c. Manufacturing Companies

They use labour, plant and equipment to convert raw materials into finished products. Due to which they carry three types of inventories:

Raw materials inventory
Work in process inventory
Finished goods inventory

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01:28

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The journal entry to record direct labor worked on a particular job involves a A) debit to Work-In-Process Inventory and credit Salaries and Wages Payable. B) debit to Work-In-Process Inventory and credit Finished Goods Inventory. C) debit to Salaries and Wages Payable and credit Work-In-Process Inventory. D) debit to Manufacturing Overhead Control and a credit to Salaries and Wages Payable.

Answer 2

Textbook Question

Chapter 2, Problem 1QC

(Learning Objective 1) Which of the following types of companies would have work in process inventory?

a. Service
b. Merchandising
c. Manufacturing
d. All of the above

Expert Solution & Answer

To determine

To-identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Manufacturing companies would have work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service Companies

They deal in intangibles, so generally do not have inventories.

b. Merchandising Companies

They resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.

c. Manufacturing Companies

They use labour, plant and equipment to convert raw materials into finished products. Due to which they carry three types of inventories:

Raw materials inventory
Work in process inventory
Finished goods inventory

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01:28

Answer 3

Textbook Question

Chapter 2, Problem 1QC

(Learning Objective 1) Which of the following types of companies would have work in process inventory?

a. Service
b. Merchandising
c. Manufacturing
d. All of the above

Expert Solution & Answer

To determine

To-identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Manufacturing companies would have work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service Companies

They deal in intangibles, so generally do not have inventories.

b. Merchandising Companies

They resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.

c. Manufacturing Companies

They use labour, plant and equipment to convert raw materials into finished products. Due to which they carry three types of inventories:

Raw materials inventory
Work in process inventory
Finished goods inventory

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01:28

Answer 4

Textbook Question

Chapter 2, Problem 1QC

(Learning Objective 1) Which of the following types of companies would have work in process inventory?

a. Service
b. Merchandising
c. Manufacturing
d. All of the above

Expert Solution & Answer

To determine

To-identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Manufacturing companies would have work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service Companies

They deal in intangibles, so generally do not have inventories.

b. Merchandising Companies

They resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.

c. Manufacturing Companies

They use labour, plant and equipment to convert raw materials into finished products. Due to which they carry three types of inventories:

Raw materials inventory
Work in process inventory
Finished goods inventory

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01:28

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To-identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Manufacturing companies would have work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service Companies

They deal in intangibles, so generally do not have inventories.

b. Merchandising Companies

They resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.

c. Manufacturing Companies

They use labour, plant and equipment to convert raw materials into finished products. Due to which they carry three types of inventories:

Raw materials inventory
Work in process inventory
Finished goods inventory

Answer 8

Expert Solution & Answer

To determine

To-identify: The appropriate answer for the given statement.

Answer to Problem 1QC

Manufacturing companies would have work in process inventory.

Explanation of Solution

There are basically three types of companies:

a. Service Companies

They deal in intangibles, so generally do not have inventories.

b. Merchandising Companies

They resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.

c. Manufacturing Companies

They use labour, plant and equipment to convert raw materials into finished products. Due to which they carry three types of inventories:

Raw materials inventory
Work in process inventory
Finished goods inventory

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To-identify: The appropriate answer for the given statement.

Answer 12

Answer to Problem 1QC

Manufacturing companies would have work in process inventory.

Answer 13

Explanation of Solution

There are basically three types of companies:

a. Service Companies

They deal in intangibles, so generally do not have inventories.

b. Merchandising Companies

They resell tangible products that they buy from manufacturers and suppliers. The inventory carried on by these companies is generally finished goods inventory.

c. Manufacturing Companies

They use labour, plant and equipment to convert raw materials into finished products. Due to which they carry three types of inventories:

Raw materials inventory
Work in process inventory
Finished goods inventory

Answer 14

Ch. 2 - (Learning Objective 1) Which of the following...Ch. 2 - (Learning Objective 2) Which of the following is...Ch. 2 - (Learning Objective 3) A cost that can be traced...Ch. 2 - (Learning Objective 4) Period costs are often...Ch. 2 - (Learning Objective 4) Conversion costs consist of...Ch. 2 - (Learning Objective 4) Which of the following is...Ch. 2 - Prob. 7QC Ch. 2 - (Learning Objective 5) Which of the following...Ch. 2 - Prob. 9QC Ch. 2 - Prob. 10QC

(Learning Objective 1) Which of the following types of companies would have work in process inventory? a. Service b. Merchandising c. Manufacturing d. All of the above

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