Question 1

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Accepted Answer

A)   period costs.
B)   nonmanufacturing costs.
C)   selling and administrative expenses.
D)   manufacturing overhead.E) B) and C)
F) All of the above

Question 3

Cost of goods manufactured in a manufacturing company is analogous to

Accepted Answer

A)   ending inventory in a merchandising company.
B)   beginning inventory in a merchandising company.
C)   cost of goods available for sale in a merchandising company.
D)   cost of goods purchased in a merchandising company.E) None of the above
F) All of the above

Question 4

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $866,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is

Accepted Answer

A)   $854,000.
B)   $878,000.
C)   $826,000.
D)   $602,000.E) None of the above
F) All of the above

Question 5

Raw materials inventory shows the cost of completed goods available for sale to customers.

Accepted Answer

A) True 
 B)False

Question 6

For inventoriable costs to become expenses under the matching principle,

Accepted Answer

A)   the product must be finished and in stock.
B)   the product must be expensed based on its percentage-of-completion.
C)   the product to which they attach must be sold.
D)   all accounts payable must be settled.E) B) and C)
F) All of the above

Question 7

What is work in process inventory generally described as?

Accepted Answer

A)   Costs applicable to units that have been started in production but are only partially completed
B)   Costs associated with the end stage of manufacturing that are almost always complete and ready for customers
C)   Costs strictly associated with direct labor
D)   Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docksE) B) and C)
F) A) and D)

Question 8

Both direct materials and indirect materials are

Accepted Answer

A)   raw materials.
B)   manufacturing overhead.
C)   merchandise inventory.
D)   sold directly to customers by a manufacturing company.E) A) and B)
F) A) and C)

Question 9

Benson Inc.'s accounting records reflect the following inventories:   Dec. 31, 2016 Dec. 31, 2017 Raw materials inventory $80,000$64,000 Work in process inventory 104,000116,000 Finished qoods inventory 100,00092,000\begin{array}{lrr}&	ext { Dec. 31, } 2016&	ext { Dec. 31, } 2017\	ext { Raw materials inventory } & \$ 80,000 & \$ 64,000 \	ext { Work in process inventory } & 104,000 & 116,000 \	ext { Finished qoods inventory } & 100,000 & 92,000\end{array} Raw materials inventory  Work in process inventory  Finished qoods inventory ​ Dec. 31, 2016$80,000104,000100,000​ Dec. 31, 2017$64,000116,00092,000​  During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during 2017 for Benson?

Accepted Answer

A)   $1,864,000
B)   $1,876,000
C)   $1,860,000
D)   $1,872,000 E) A) and B)
F) None of the above

Question 10

On the costs of goods manufactured schedule, depreciation on factory equipment

Accepted Answer

A)   is not listed because it is included with Depreciation Expense on the income statement.
B)   appears in the manufacturing overhead section.
C)   is not listed because it is not a product cost.
D)   is not an inventoriable cost.E) A) and B)
F) None of the above

Question 11

Product costs are also called inventoriable costs.

Accepted Answer

A) True 
 B)False

Exam 15: Managerial Accounting

On the costs of goods manufactured schedule, depreciation on factory equipment

Correct Answer
verified

Both direct materials and indirect materials are

Correct Answer
verified

Correct Answer
verified

For inventoriable costs to become expenses under the matching principle,

Correct Answer
verified

Correct Answer
verified

Cost of goods manufactured in a manufacturing company is analogous to

Correct Answer
verified

What is work in process inventory generally described as?

Correct Answer
verified

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Correct Answer
verified

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Correct Answer
verified

Product costs are also called inventoriable costs.

Correct Answer
verified

Raw materials inventory shows the cost of completed goods available for sale to customers.

Correct Answer
verified

Exam 15: Managerial Accounting

On the costs of goods manufactured schedule, depreciation on factory equipment

Correct AnswerverifiedShow Answer

Both direct materials and indirect materials are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For inventoriable costs to become expenses under the matching principle,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Cost of goods manufactured in a manufacturing company is analogous to

Correct AnswerverifiedShow Answer

What is work in process inventory generally described as?

Correct AnswerverifiedShow Answer

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Correct AnswerverifiedShow Answer

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Correct AnswerverifiedShow Answer

Product costs are also called inventoriable costs.

Correct AnswerverifiedShow Answer

Raw materials inventory shows the cost of completed goods available for sale to customers.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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