The Assembling Department of Mat Liners Had 7,500 Units in Process

question 129

Multiple Choice

The Assembling Department of Mat Liners had 7,500 units in process on December 1 and received 10,000 units from the Sewing Department. Calculate the number of units to account for by the Assembling Department for December.

• A)17,500 units
• B)10,000 units
• C)7,500 units
• D)2,500 units

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Definitions:

Manufacturing Overhead Account

An accounting term referring to all indirect costs associated with manufacturing a product, such as utilities, depreciation, and salary of indirect labor.

Direct Labor

Labor costs that are directly attributable to the production of goods or services, such as wages for workers manufacturing a product.

Indirect Labor

Labor costs not directly associated with the production of goods or services, such as salaries of supervisors or maintenance staff.

Product Costs

All costs directly tied to the creation of a product, including materials, labor, and allocated overhead.