Nancy's Cookie Shop reported equipment at $120,000 and $30,000 accumulated depreciation on its December 31, 2013, balance sheet. During 2014, the shop purchased equipment costing $30,000 and sold equipment costing $10,000 (book value $4,000) for $1,000. On December 31, 2014, net equipment was $98,000. Using the indirect method, Samantha's would report depreciation expense on its statement of cash flows for 2014 of: Question 2 options: $30,000. $14,000. $18,000. An example of a period cost, as opposed to a product cost, is: Question 19 options: wages of factory workers. salesperson's commissions. factory utilities. When there is beginning work in process, units transferred out are computed by subtracting: Question 20 options: beginning work in process units from the units started into production. ending work in process units from the units accounted for. beginning work in process units from the units to be accounted for. Raw materials inventory, January 1 $20,000 Raw materials inventory, December 31 10,000 Work in process inventory, January 1 6,000 Work in process inventory, December 31 9,000 Finished goods inventory, January 1 16,000 Finished goods inventory, December 31 20,000 Raw materials purchases 400,000 Direct labor 200,000 Factory utilities 75,000 Indirect labor 45,000 Factory depreciation 180,000 Selling & administrative expenses 210,000 Assume direct materials is $400,000. Total manufacturing costs equal: Question 25 options: $700,000. $900,000. $780,000. Raw materials inventory, January 1 $20,000 Raw materials inventory, December 31 10,000 Work in process inventory, January 1 6,000 Work in process inventory, December 31 9,000 Finished goods inventory, January 1 16,000 Finished goods inventory, December 31 20,000 Raw materials purchases 400,000 Direct labor 200,000 Factory utilities 75,000 Indirect labor 45,000 Factory depreciation 180,000 Selling & administrative expenses 210,000 Assume goods manufactured is $870,000. The cost of goods sold is: Question options: $866,000. $870,000. $874,000.