Which One of the Following Statements Is True in Determining

question 75

Multiple Choice

Which one of the following statements is true in determining total manufacturing costs on the cost of goods manufactured schedule?

• A)Actual manufacturing overhead is added to direct materials and direct labour.
• B)The schedule calculates the balance in the work in process account.
• C)Beginning work in process inventory will be less than ending work in process.
• D)Applied manufacturing overhead costs are listed for the amount of manufacturing overhead.

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Definitions:

GAAP

An aggregation of universally recognized rules and standards in accounting for presenting financial information.

Non-Interest-Bearing Note

A type of promissory note that does not accrue interest over its life, with the borrower repaying only the principal amount borrowed.

Net Carrying Value

The current book value of an asset or company after subtracting total liabilities from total assets.