Indirect labor is recorded by debiting the ___________ account.

Multiple Choice

• Salaries and Wages Payable

• Raw Materials Inventory

• Manufacturing Overhead

• Work in Process Inventory

The price-earnings ratio is computed by dividing the current market value per share by the ____________________.

Multiple Choice

• earnings per share

• total assets

• net sales

• cash dividend per share

Department A had gross profit on sales of $22,000, contribution margin of $13,200, total direct expenses of $8,800, and total indirect expenses of $7,800. Department A has:

Multiple Choice

• a net loss from operations of $4,400.

• a net income from operations of $4,400.

• a net income from operations of $7,800.

• a net income from operations of $5,400.

Indirect labor for a manufacturing business includes the wages of:

Multiple Choice

• employees who sell the product.

• employees who assemble the product.

• factory repair and maintenance employees.

• office employees.

To compute the ____________________, it is necessary to subtract the ending work in process inventory from the sum of the beginning work in process inventory and the total manufacturing cost.

Multiple Choice

• manufacturing overhead

• cost of goods manufactured

• cost of goods sold

• gross profit

To compute the ____________________, it is necessary to subtract the ending work in process inventory from the sum of the beginning work in process inventory and the total manufacturing cost.

Multiple Choice

• manufacturing overhead

• cost of goods manufactured

• cost of goods sold

• gross profit