Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which of the following statements about manufacturing overhead costs is NOT correct?

Depreciation on factory equipment is considered part of manufacturing overhead.

Manufacturing overhead is directly traceable to specific products.

Manufacturing overhead is applied to products using a predetermined overhead rate.

Manufacturing overhead includes indirect materials, indirect labor, and other factory costs.

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Verified step by step guidance

Understand the concept of manufacturing overhead: Manufacturing overhead includes all indirect costs associated with the production process, such as indirect materials, indirect labor, and other factory costs like utilities, maintenance, and depreciation on factory equipment.

Review the statement 'Depreciation on factory equipment is considered part of manufacturing overhead': This is correct because depreciation on factory equipment is an indirect cost related to production.

Analyze the statement 'Manufacturing overhead is directly traceable to specific products': This is NOT correct because manufacturing overhead costs are indirect and cannot be directly traced to specific products. Instead, they are allocated to products using a predetermined overhead rate.

Evaluate the statement 'Manufacturing overhead is applied to products using a predetermined overhead rate': This is correct. Manufacturing overhead is allocated to products based on a predetermined rate, which is calculated using estimated overhead costs and an allocation base (e.g., machine hours or labor hours).

Confirm the statement 'Manufacturing overhead includes indirect materials, indirect labor, and other factory costs': This is correct because these are all components of manufacturing overhead.