Complete the Following by Filling in the Blanks

question 155

Essay

Complete the following by filling in the blanks:
(1) The Prepaid Insurance account had a $455 debit balance at the beginning of the current year; $650 of insurance premiums were paid during the year; and the year-end balance sheet showed $420 of prepaid insurance; consequently, the income statement for the year must have shown $_______________ of insurance expense.
(2) The Office Supplies account began the current year with a $235 debit balance; the income statement for the year showed $475 of office supplies expense; and the year-end balance sheet showed the current asset, office supplies, at $225; consequently, if all supplies were accounted for, $_____________ of office supplies must have been purchased during the year.

---

Definitions:

Committed Fixed Cost

Long-term, fixed costs that a business incurs from entering into long-term contracts or having fixed assets, which are not easily altered in the short term.

Taxes On Real Estate

Levies imposed by government entities based on the assessed value of real estate property.

Indirect Manufacturing Cost

Costs related to the production process that cannot be directly traced to specific products, such as utilities or supervision, often referred to as manufacturing overhead.

Conversion Costs

The sum of direct labor and manufacturing overhead costs. These are the costs incurred to convert raw materials into finished goods.