Recording direct labor costs in a job order cost accounting system:
a. increases Factory Overhead, decreases Work in Process
b. increases Finished Goods, increases Wages Payable
c. increases Work in Process, increases Wages Payable
d. increases Factory Overhead, increases Wages Payable
Which of the following expenditures would NOT be included in the cost of an asset?
a. Freight costs
c. Sales tax
d. Costs of clearing land
For which of the following taxes is there no ceiling on the amount of employee annual earnings subject to the tax?
a. only FICA tax
b. only federal income tax
c. only federal unemployment compensation tax
d. only state unemployment compensation tax
The percentage analysis of increases and decreases in corresponding items in comparative financial statements is referred to as horizontal analysis.
On April 1, a machine with a useful life of 4 years and a residual value of $12,000 was purchased for $87,000. What is depreciation expense for the second year under declining balance depreciation assuming a December 31 year end?