Which of the Following Items Would NOT Be Classified as Part

question 5

Multiple Choice

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

• A)factory supplies used
• B)canvas used in sails
• C)depreciation of factory buildings
• D)indirect materials

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Definitions:

Ending Inventory Costs

The total value of all the goods that a company has in stock at the end of an accounting period, before any adjustments or cost of goods sold calculations.

LIFO Periodic Inventory Method

An inventory valuation method where the last items purchased are the first items considered sold during a given period, calculated periodically.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before any adjustments for cost of sales.

Perpetual Inventory System

A bookkeeping approach that instantly logs the sale or acquisition of stock using computerized point-of-sale systems and enterprise asset management programs.