Asked by Silvia Sanchez on Jul 20, 2024
Verified
All of the following would be reported on the balance sheet as a current asset except
A) factory overhead
B) materials inventory
C) finished goods inventory
D) work in process inventory
Factory Overhead
The indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.
Current Asset
Resources anticipated to be transformed into cash, disposed of, or utilized within one year or during the business's standard operating period.
- Discern the differences between costs incurred in manufacturing activities and those arising from non-manufacturing operations in a business scenario.
Verified Answer
BA
Brian AvakyanJul 23, 2024
Final Answer :
A
Explanation :
Factory overhead is an indirect cost and is not a tangible asset that can be converted into cash or used in operations, so it would not be reported as a current asset on the balance sheet. Materials inventory, finished goods inventory, and work in process inventory are all tangible assets that can be sold or used in operations and would typically be reported as current assets on the balance sheet.
Learning Objectives
- Discern the differences between costs incurred in manufacturing activities and those arising from non-manufacturing operations in a business scenario.