34. A company manufactures picture frames. All of the following are PRODUCT cost

Question

34. A company manufactures picture frames. All of the following are PRODUCT costs EXCEPT: a. Wages paid for assembly workers b. Salary of president of the company c. Wood for frames d. Depreciation on factory building 35. Which of the following statements is FALSE? Indirect Labor is a type of Manufacturing Overhead Product costs are not immediately expensed; instead they are "absorbed" by each unit of inventory as it moves through production. The three categories of Manufacturing Overhead are indirect labor, indirect materials, and all other production-related costs. Period costs are expensed immediately as COGS. a. b. c. d. 36. Giltronics, Inc. applies materials handling manufacturing overhead on the basis of the number of moves required. The following information is available at the beginning of the year: Estimated Overhead $87,400 and estimated number of moves 2300. At the end of the uccounting period, actual Overhead was $87,043 and actual number of moves was 2123. The predetermined overhead rate per move is: a. $37 b. $38 c. $41 d. $42 37. Refer to the information in the question above. The amount of manufacturing overhead applied to Work-in- Process Inventory is: a. $94,300 b. $87,400 C. $87,043 d. $80,674 38. Refer to the information in the question above. The amount of over/under-applied overhead is: a. $6,726 underapplied b. $6,369 underapplied c. $6,900 overapplied d. $6,369 overapplied 39. A company uses the perpetual inventory method. It sell Inventory with a cost of $500 for $625 Cash. Which of the following is the correct journal entry to record this transaction? a. b. c. d. Dr Cash $625, Cr Sales Revenue $500, Cr. Inventory $125 Dr Cash $625, Cr Sales Revenue $625; Dr COGS $500, Cr Inventory $500 Dr. Cash $500, Cr Inventory $500 Dr. Cash $625, Cr. Inventory $500, Cr. Sales Revenue $125 40. The journal entry to record a customer's payment within the discount period would include all of the following EXCEPT: a. Debit to Cash b. Debit to Sales Discount c. Credit to Sales Revenue d. Credit to Accounts Receivable 61Page

Explanation / Answer

34. b. Salary of the president of the company.

35. d. The period costs are expensed immediately as COGS.

36. b. $ 38 ( $ 87,400 / 2,300 moves)

37. d. $ 80,674 ( $ 38 x 2,123)

38. b $ 6,369 underapplied ( $ 87,043 - $ 80,674)

39. b.

40. c.

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