ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
1.
Period costs are different from product costs in which of the following ways?
Period costs are not inventoriable, product costs are inventoriable
Period costs are inventoriable, product costs are not inventoriable
Period costs are indirect, product costs are direct
Period costs are reflected on the balance sheet, product costs are reflected on the income statement
2.
Finished goods inventory can be best described as:
Goods that are finished and have been sold
Goods that flow into work in process inventory
Goods not yet completed
Goods that are finished and waiting to be sold
3.
In the accounting period in which goods are sold, product costs are classified in which of the following categories?
Manufacturing overhead
Work in process inventory expense
Finished goods inventory expense
Cost of goods sold
4.
Finished goods inventory is reported as an expense on the income statement.
True
False
5.
All the following would be good examples of companies that would use process costing EXCEPT:
Soft drink bottling company
Apparel manufacturing company
Construction company
Fruit production company
6.
When using a process costing system, costs classified as work-in-process inventory are categorized according to the associated:
Activity
Input
Output
Job
7.
All of the following costs would most likely be categorized as overhead costs EXCEPT:
Depreciation expense
Consultants’ salary expense
Rent expense
Electricity expense
8.
Overhead is applied based on the actual overhead realized during the year.
True
False
9.
Absorption costing is NOT required for financial accounting purposes, but is required for managerial reporting purposes.
True
False
10.
Based on the lecture, a manager using absorption costing can decrease reported cost of goods sold by:
Decreasing selling price
Decreasing production levels
Increasing production levels
Increasing selling price
11.
In a manufacturing setting, gross margin is revenue minus all the following, EXCEPT:
Direct material
Overhead
Direct labor
Other expenses
12.
Overhead costs in a manufacturing setting can be best described as ________ costs.
Both fixed and variable
Neither fixed nor variable
Variable
Fixed
13.
Brown Company manufactures and sells pianos.
The following information is available for its single model piano, of which 0 were in inventory at the beginning of the period, 1,000 were manufactured completely. Of those manufactured during the period, 500 have been sold, and 500 remain in finished goods inventory.
Selling price (per unit) – $6,000
Variable costs (per unit)
– Materials – 2,000
– Labor – 1,000
– Selling – 500
Fixed Costs (total)
– Manufacturing – 90,000
– Selling – 25,000
Given the information above, what is the cost of goods sold for the period?
$1,500,000
$1,820,000
$1,545,000
$1,590,000
14.
Brown Company manufactures and sells pianos.
The following information is available for its single model piano, of which 0 were in inventory at the beginning of the period, 1,000 were manufactured completely. Of those manufactured during the period, 500 have been sold, and 500 remain in finished goods inventory.
Selling price (per unit) – $6,000
Variable costs (per unit)
– Materials – 2,000
– Labor – 1,000
– Selling – 500
Fixed Costs (total)
– Manufacturing – 90,000
– Selling – 25,000
Given the information above, what is the ending inventory for the period (in units, and in dollar value)?
1000 units, $3,090,000
500 units; $1,557,500
0 units; $0
500 units, $1,545,000
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
