Question
6. Which of the following is not considered a manufacturing cost? a. Wages paid to assembly workers in an automobile factory b. Rubber purchased for the manufacturing of tires. c. Commissions paid to salespersons. d. Property taxes paid on factory equipment. QUESTIONS 7-10 ARE BASED ON THE FOLLOWING The Anthony Company reports the following information pertaining to its operating activities for the year: Ending Balance $10,000 $29,000 $52,000 Beginning Balance ning Balance Ending Balance Raw Material Work in Process Finished Goods $40,000 $60,000 $42,000 Direct Materials Purchased Direct Labor Costs Applied Manufacturing Overhead Applied $40,000 $21,000 $18,000 7. What is the direct material used during the year? a. $70,000 b. $40,000 c. $79,000 d. $109,000 8. What are the total manufacturing costs? a. $70,000 b. $40,000 c. $79,000 d. $109,000 9. What is the cost of finished goods manufactured during the year? a. $109,000 b. $140,000 c. $130,000 d. $70,000
Explanation / Answer
Answer:6 c. Commissions paid to salespersons
Because it is considered as Period/Selling cost.
