Barnes Company Showed the Following Balances at the End of Its

question 223

Multiple Choice

Barnes Company showed the following balances at the end of its first year: Mc. 141 (count) What did Barnes Company show as total credits on its trial balance?

• A) $37,100
• B) $36,400
• C) $35,700
• D) $37,800

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Definitions:

Indirect Materials

Materials used in the production process that do not become an integral part of the final product and are not directly assigned to specific units produced.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute an integral part of the finished product.

Manufacturing Overhead

Costs associated with the production process that are not directly traceable to a specific product, such as utilities and factory maintenance.

Cost of Goods Sold

The costs incurred directly from manufacturing the goods a company sells.