__a__        1.   A debit balance in the Manufacturing Overhead account at the end of an interim month means that

a. the balance should be reported as a current liability in the monthly balance sheet.

b. corrective action by management is necessary.

c. overhead has been under applied.

d. cost of goods sold should be credited on the monthly income statement.

The following data should be used for questions 7-10:

Raw materials inventory, January 1	$10,000	Raw materials purchases	$600,000
Raw materials inventory, December 31	15,000	Direct labor/	230,000
Work in process, January 1	9,000	MHO Factory utilities	75,000
Work in process, December 31	5,000	MOH Indirect labor	25,000
Finished goods, January 1	16,000	MOH Factory depreciation	200,000
Finished goods, December 31	20,000	Selling and administrative expenses	210,000

__b__ 2. Direct materials used is

a. $630,000.

b. $610,000.

c. $600,000.

d. $595,000.

__d__ 3. Total manufacturing cost added is

a. $1,130,000.

b. $1,127,000.

c. $1,030,000.

d. $1,340,000.

____ 4. Cost of goods manufactured equals

a. $1,096,000.

b. $1,097,000.

c. $1,104,000.

d. $1,109,000.

____ 5. The cost of goods sold is

a. $1,123,000.

b. $1,104,000.

c. $1,116,000.

d. $1,124,000.

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