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33. Which of the following is not a reason that managers allocate overhead costs to products? a. To provide information for decision making. b. To apply direct labor and direct materials to products. c. To promote efficient use of resources. d. To comply with U.S. Generally Accepted Accounting Principles (GAAP). e. None of the answer choices is correct. 34. Using a process costing system, the journal entry to record the cost of completed goods when sold includes: a. a debit to Finished Goods Inventory. b. a credit to Cost of Goods Sold. c. a debit to Work in Process Inventory. d a credit to Finished Goods Inventory. e. None of the answer choices is correct, 35. Frost Company produces cupcakes in large batches. Three departments are involved in the production process -- Mixing. Baking, and Packaging. Frost uses a process costing system. If the Mixing Department requisitioned direct materials to be used in production totaling $3,500, which of the following journal entries is needed to record this transaction? a. Raw Materials Inventory 3,500 WIP Inventory - Mixing 3,500 3.500 3.500 b. Finished Goods Inventory Raw Materials Inventory 3,500 3.500 c. WIP Inventory - Mixing Manufacturing Overhead 3,500 3,500 d. WIP Inventory - Mixing Raw Materials Inventory e. None of the answer choices is correct. 41 36. Direct labor costs related to production are: a. period costs. b. expensed in the period in which they are incurred. c. included in manufacturing overhead. d. expensed when the products are sold. c. None of the above. 42. 37. The inventory cost flow equation is: 2. Beginning balance + Transfers in - Ending balance = Transfers out b. Beginning balance + Transfers in + Ending balance = Transfers out C. Beginning balance - Transfers in-Ending balance - Transfers out d. Beginning balance - Transfers in + Ending balance = Transfers out c. None of the above