QUESTION 1: Identify the right answer for the following statements. The salary of the director of a manufacturer is part of the manufacturing overhead costs. The depreciation on the machines used on the manufacturing line is considered to be indirect manufacturing cost. Manufacturing overhead costs are also known as indirect manufacturing costs. Commissions paid to sell products are reported as part of the cost of goods sold. Manufacturing overhead must be assigned to both work-in-process inventory and finished goods inventory for external financial reporting purposes. True False True False True False True False True False

QUESTION 1: Identify the right answer for the following statements. The salary of the director of a manufacturer is part of the manufacturing overhead costs. The depreciation on the machines used on the manufacturing line is considered to be indirect manufacturing cost. Manufacturing overhead costs are also known as indirect manufacturing costs. Commissions paid to sell products are reported as part of the cost of goods sold. Manufacturing overhead must be assigned to both work-in-process inventory and finished goods inventory for external financial reporting purposes. True False True False True False True False True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Distinguish between manufacturing & non-manufacturing overhead (product versus period costs) 2) Classify costs as prime costs or conversion costs 3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for. 4) Prepare an income statement for a manufacturing entity, clearly showing Cost of Goods Sold. 5) Explain the difference between the income statements of a merchandiser & a manufacturer Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor 3,952,600 Indirect Factory Labor 1,232,250 Total Depreciation 1 400,000 Total Utilities 525,000 Distribution & Customer Service Costs 76,800 Insurance on Plant & Equipment 585,000 Property Taxes 90,000 Administrative wages & salaries 1076,000…
Manufacturing companies are not required to allocate joint-process costs in the valuation of inventories and cost of goods sold for O a. financial reporting. O b. tax reporting. c. managerial reporting. O d. All of the above.
The journal entry for adjustment of underallocated manufacturing overhead includes a: A) credit to Finished Goods Inventory. B) credit to Manufacturing Overhead. C) debit to Work-in-Process Inventory. D) credit to Cost of Goods Sold.
Standard cost are used primarily for: Estimating future costs. To produce financial statements for external users. To judge the performance of accounting managers. To judge the performance of managers involved in the manufacturing process.
Use the information to prepare a schedule of cost of goods manufactured and an income statement. Assume no indirect materials are used and all amounts are shown in millions.
In the Excel, or spreadsheet, approach to recording financial transactions, the Manufacturing Overhead account is used to record two things-all actual overhead expenses and the amount of manufacturing overhead applied to production using the predetermined overhead rate. True or False True False
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The Cost of Production Report provides info and reports on the production costs charged to that department and the costs allocated to finished goods and to work-in-process. True False
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Which of the following is a period cost? a. Property taxes on the production facilities. b. The production supervisor's salary. c. Costs to ship the product to the customer. d. Depreciation of the factory equipment.