Given the Following Accounts

question 7

Multiple Choice

Given the following accounts:
-Charged direct labor to production.
Debit ________ Credit ________

• A)Expense accounts.
• B)Accounts receivable
• C)Finished goods inventory.
• D)Work in process inventory.
• E)Raw materials inventory.
• F)Factory supplies inventory.
• G)Manufacturing overhead applied
• H)Depreciation expense
• I)Accounts payable.
• J)Payroll payable
• K)Utilities expense
• L)Sales.
• M)Raw materials purchases.
• N)Manufacturing overhead-control.
• O)Cost of goods sold.
• Indicate the account(s) to be debited and credited to record the following transactions.

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Definitions:

Contribution Format

A type of income statement where fixed and variable costs are separated to calculate contribution margin.

Traditional Format

A method of organizing income statement or other financial statements using a conventional structure, typically separating costs into fixed and variable categories.

Variable Selling Expense

Costs that vary directly with the volume of sales or production, such as commissions and shipping charges.

Fixed Selling Expense

The costs associated with selling a product or service that do not vary with sales volume, such as salaries of sales staff and advertising expenses.