The Following Are the Current Month's Balances for ABC Financial

question 133

Multiple Choice

The following are the current month's balances for ABC Financial Services Company before preparing the trial balance. $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 9,000 \\\hline \text { Revenue } & 5,000 \\\hline \text { Cash } & 2,000 \\\hline \text { Expenses } & 15,500 \\\hline \text { Furniture } & 11,000 \\\hline \text { Accounts Receivable } & 12,000 \\\hline \text { Miller, Capital } & ? \\\hline \text { Notes Payable } & 6,500 \\\hline\end{array}$$ What amount should be shown for Miller,Capital on the trial balance?

• A) $42,000
• B) $20,000
• C) $15,500
• D) $25,000

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Definitions:

Overhead

All indirect costs related to the production of goods or services, including utilities, rent, and salaries for support staff, not directly traceable to a product.

Conversion Cost

The combination of labor costs and overhead expenses associated with transforming raw materials into finished goods.

Equivalent Unit

A unit of production expressed in terms of the amount of materials, labor, or overhead necessary to complete one unit of production.

Process Costing System

An accounting method used in manufacturing where costs are assigned to processes or departments, suitable for homogeneous products.