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 is NOT considered a factory overhead cost?

Depreciation on factory equipment

Factory utilities expense

Direct materials used in production

Factory supervisor's salary

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Verified step by step guidance

Step 1: Understand the concept of factory overhead costs. Factory overhead costs are indirect costs incurred during the manufacturing process that cannot be directly traced to a specific product. Examples include depreciation on factory equipment, factory utilities, and factory supervisor's salary.

Step 2: Differentiate between direct costs and indirect costs. Direct costs, such as direct materials and direct labor, are directly traceable to the production of specific goods. Indirect costs, such as factory overhead, are shared across multiple products and cannot be directly traced.

Step 3: Analyze each option provided in the question. Depreciation on factory equipment, factory utilities expense, and factory supervisor's salary are all indirect costs and therefore considered factory overhead. Direct materials used in production, however, are direct costs and not part of factory overhead.

Step 4: Identify the correct answer based on the analysis. Since direct materials used in production are direct costs, they are NOT considered factory overhead costs.

Step 5: Conclude that the correct answer is 'Direct materials used in production,' as it does not fall under the category of factory overhead costs.