Selection type

61. At the end of July, the rst month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet? a. overapplied. deferred credit b. underapplied, deferred debit c. underapplied, deferred credit d. overapplied, deferred debit 62. At the end of the fiscal year, the balance in Factory Overhead is small. The balance will be: a. transferred to Work in Process b. transferred to Cost of Goods Sold c. transferred to Finished Goods d. allocated between Work in Process and Finished Goods 63. Which of the following is an example of direct labor cost for a cell phone manufacturer? a. cost of oil lubricants for factory machinery b. cost of wages of assembly worker c. salary of plant supervisor d. cost of phone components 64. In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead? a. materials b. direct labor c. rent d. supplies Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about July's activities is as follows: On July 1: Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000 During July: Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520 On July 31: Ending inventories 1,600 units, 40% complete 65