Which type of company would report work-in-process inventory as a line item on their balance sheet?

Group of answer choices

service company

merchandising company

manufacturing company

nonprofit entity

Question 7

Our company is a manufacturer and has the following data available for the current year:

• sales, $550,000;
• cost of goods manufactured, $250,000;
• finished goods beginning inventory, $30,000; and
• finished goods ending inventory, $20,000.

What is the amount reported on the income statement for gross profit?

Group of answer choices

$260,000

$240,000

$290,000

$310,000

Question 8

Our company is a manufacturer of sunglasses. Each pair of sunglasses requires 6 drops of glue. Glue costs $10 per gallon. Glue for the frames would most likely be classified as:

Group of answer choices

direct materials

indirect materials

direct labor

indirect labor

other factory overhead

Question 9

Which of the following is an example of a product cost?

Group of answer choices

company president's salary

depreciation on company cars used by sales force

plant janitor's wages

advertising expense

Question 10

Conversion costs include:

Group of answer choices

direct labor and indirect labor

direct materials and direct labor

direct labor and factory overhead

direct materials and factory overhead