Question

Which of the following would increase the Manufacturing Overhead account?

a.) CEO Bonus paid of $20,000.

b.) Production Wages of $10,000.

c.) Production supervisor's wages of $10,000

d.) Sales Commissions paid of $4,000.

Cost of Goods Sold and Cost of Goods Manufactured are the same for ABC Company when?

a.) Beginning inventory of raw materials and Ending inventory of raw materials are the same.

b.) Beginning inventory of finished goods and Ending inventory of finished goods are the same.

c.) Beginning inventory of work in process and Ending inventory of work in process are the same.

d.) Beginning inventory, in total, and Ending inventory, in total, are the same.

Answer 1

1) Production wages is Direct labor But CEO bonus and sales commission paid is period Cost not product cost

But production supervisor's wages is manufacturing overhead

So answer is c) Production supervisor's wages for $10000

2) When beginning finished goods and ending finished goods is same then Cost of goods manufactured is similar to Cost of goods sold

So answer is b) Beginning inventory of finished goods and ending inventory of finished goods are the same