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

Manufacturing overhead costs include which of the following?

Raw materials purchased for production

Indirect materials and factory utilities

Sales commissions paid to sales staff

Direct labor used in production

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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 that cannot be directly traced to specific units of product. These costs are necessary to run the production facility but are not directly tied to the production of goods.

Identify the components of manufacturing overhead: Examples of manufacturing overhead include indirect materials (e.g., lubricants, cleaning supplies), indirect labor (e.g., factory supervisors, maintenance staff), and factory-related expenses (e.g., utilities, depreciation on factory equipment, rent for the factory).

Analyze the options provided: Evaluate each option to determine whether it qualifies as a manufacturing overhead cost. For example, raw materials purchased for production are direct costs, not overhead. Sales commissions are selling expenses, not related to production. Direct labor is a direct cost, not an overhead cost.

Focus on the correct answer: Indirect materials and factory utilities are part of manufacturing overhead because they are necessary for production but cannot be directly traced to specific products.

Conclude the reasoning: Based on the analysis, the correct answer is 'Indirect materials and factory utilities,' as these are indirect costs that support the production process and fall under manufacturing overhead.