Small Corporation Uses a Wages Clearing Account for Its Payroll

question 39

Multiple Choice

Small Corporation uses a Wages Clearing Account for its payroll disbursements.At the end of February,a reasonably large debit balance remained in this account.What is the most likely reason?

• A)More labour cost had been assigned to the expense accounts than had been paid.
• B)Some labour cost had not been properly classified in the expense accounts.
• C)Some employees had not yet cashed their cheques.
• D)Not enough cash had been transferred to the bank account.

Identify and calculate underapplied or overapplied manufacturing overhead and its implications.

Understand the distinction between job-order costing and process costing systems.

Analyze T-account transactions to determine ending balances in various accounts such as Work in Process, Finished Goods, and Manufacturing Overhead.

Calculate the cost of goods manufactured using given job-order costing data.

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Definitions:

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-run average total cost.

Economic Costs

The total cost of choosing one action over another, comprising both the costs directly incurred and the opportunity costs forgone by not taking the alternative action.

Total Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.

Assistant's Salary

The compensation paid to an assistant, which typically includes wages or salaries for clerical, support, or administrative roles.