Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem 6QC
(Learning Objective 4) Which of the following is not part of manufacturing
- a. Period costs, such as depreciation on office computers
- b. Indirect materials, such as machine lubricants
- c. Indirect labor, such as plant forklift operators’ wages
- d. Other indirect
manufacturing costs , such as plant utilities
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Which of the following costs is considered as an example of manufacturing overheads?. Question 2 Answer
a. Warehousing. b. The insurance on the factory building. c. Delivery transportation costs. d. Research and
development costs. Clear my choice
Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.
1. Which of the following manufacturers is most likely to use a process cost system?
Purse manufacturer
Sports drink manufacturer
Automobile manufacturer
Guitar manufacturer
2. Process and job order cost systems are similar in that both systems _______.
record and summarize product costs
classify product costs as direct materials, direct labor, and factory overhead
allocate factory overhead costs to products
All of these choices are correct.
Which of the following is not part of manufacturing overhead for producing a computer?
a. Manufacturing plant property taxes
b. Manufacturing plant utilities
c. Depreciation on delivery trucks
d. Insurance on plant and equipment
Chapter 2 Solutions
Managerial Accounting (5th Edition)
Ch. 2 - (Learning Objective 1) Which of the following...Ch. 2 - (Learning Objective 2) Which of the following is...Ch. 2 - (Learning Objective 3) A cost that can be traced...Ch. 2 - (Learning Objective 4) Period costs are often...Ch. 2 - (Learning Objective 4) Conversion costs consist of...Ch. 2 - (Learning Objective 4) Which of the following is...Ch. 2 - Prob. 7QCCh. 2 - (Learning Objective 5) Which of the following...Ch. 2 - Prob. 9QCCh. 2 - Prob. 10QC
Ch. 2 - Short Exercises S2-1 Identify types of companies...Ch. 2 - Identify type of company from balance sheets...Ch. 2 - Classify costs by value chain function (Learning...Ch. 2 - Classify costs as direct or indirect (Learning...Ch. 2 - Prime costs Cost objects Product costs Assigned...Ch. 2 - Prob. 2.6SECh. 2 - Classify product costs and period costs (Learning...Ch. 2 - Classify a manufacturers costs (Learning Objective...Ch. 2 - Classify costs incurred by a dairy processing...Ch. 2 - Determine total manufacturing overhead (Learning...Ch. 2 - Prepare a retailers income statement (Learning...Ch. 2 - Compute Cost of Goods Sold for a merchandiser...Ch. 2 - Calculate direct materials used (Learning...Ch. 2 - Compute Cost of Goods Manufactured (Learning...Ch. 2 - Describe other cost terms (Learning Objectives 6...Ch. 2 - Classify costs as fixed or variable (Learning...Ch. 2 - Prob. 2.17SECh. 2 - Classify costs along the value chain for a...Ch. 2 - Classify costs along the value chain for a...Ch. 2 - Value chain and sustainability efforts (Learning...Ch. 2 - Prob. 2.21AECh. 2 - Construct an income statement using product and...Ch. 2 - Work backward to find missing amounts (Learning...Ch. 2 - Prepare a retailers income statement (Learning...Ch. 2 - Compute direct materials used and Cost of Goods...Ch. 2 - Compute Cost of Goods Manufactured and Cost of...Ch. 2 - Continues E2-26A: Prepare income statement...Ch. 2 - Determine whether information is relevant...Ch. 2 - Prob. 2.29AECh. 2 - Classify costs along the value chain for a...Ch. 2 - Classify costs along the value chain for a...Ch. 2 - Value chain and sustainability efforts (Learning...Ch. 2 - Classify and calculate a manufacturers costs...Ch. 2 - Construct an income statement using product and...Ch. 2 - Work backward to find missing amounts (Learning...Ch. 2 - Prob. 2.36BECh. 2 - Compute direct materials used and Cost of Goods...Ch. 2 - Compute Cost of Goods Manufactured and Cost of...Ch. 2 - Continues E2-38B: Prepare income statement...Ch. 2 - Determine whether information is relevant...Ch. 2 - Prob. 2.41BECh. 2 - Classify costs along the value chain (Learning...Ch. 2 - Determine ending inventory balances (Learning...Ch. 2 - Prepare income statements (Learning Objective 5)...Ch. 2 - Prob. 2.45APCh. 2 - Prob. 2.46APCh. 2 - Classify costs along the value chain (Learning...Ch. 2 - Determine ending inventory balances (Learning...Ch. 2 - Prepare income statements (Learning Objective 5)...Ch. 2 - Prob. 2.50BPCh. 2 - Prob. 2.51BPCh. 2 - Calculate operating income (Learning Objective 5)...Ch. 2 - Prob. 2.53ACT
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- Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overheadarrow_forwardCertain businesses attach manufacturing overhead to tasks based on labor costs. Determine another component (or foundation) that a business may fairly use to calculate overhead expenses.arrow_forward4. A transfer of direct materials, such as metal used to make the outer case of a video gaming system, into production include a debit to which account? Omanufacturing overhead O finished goods inventory Owork-in-process inventory O either manufacturing overhead or work-in-process inventoryarrow_forward
- Manufacturing overhead costs would include:a. Marketing costs related to selling the product.b. The salary of the production line supervisor.c. The chief executive officer’s salary.d. Research and development costs for a new product.arrow_forwardWhat is an overhead application rate? Question 11 options: Average cost of actual direct labor Actual direct material costs Estimated amount of overhead costs in an efficient operation applied to work in process Estimated amounts of administrative costs to be applied to work in processarrow_forwardFor manufacturing firms, inventoriable costs include ________. a. plant supervisor salaries. b. depreciation motor vehicles – sales staff. c. advertising costs. d. distribution costs.arrow_forward
- Total manufacturing cost includes: Select one: tof O a. direct labour and manufacturing overhead in both a job costing and a estion process costing system. O b. direct material, direct labour and manufacturing overhead in both job costing and process costing. O c. direct labour and manutacturing overhead in a process costing system. d. direct material and direct labour in a job costing system.arrow_forwardInstruction: Identify the following: 1. The amount which represents cost incurred to produce goods which are not yet completed. 2. The cost of services of employees who work directly on the product. _3. The cost of goods already completed and held for sale. 4. Yet-to-be-used materials. 5. Non-manufacturing costs incurred by a manufacturing firm in its operations. _6. Alternatively called Factory Overhead or simply Overhead. 7. Direct Materials plus direct labor plus factory overhead. 8. Goods acquired for production but not yet requisitioned to be put into process. 9. Prime Costs plus Conversion Costs. 10. Direct Labor plus Factory Burden.\ 11. The basic document to accumulate the cost of each order. 12. System that collects the actual amounts of product costs. 13. System that is often used by furniture manufacturers who produces variety of products, because such producers need to keep track of each specific order to ensure correct assignment of costs. 14. Rate used in accumulation of…arrow_forwardQuestion. Signify the account that should be DEBITED to record each transaction below. Group of answer choices A. The consumption of direct materials in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials B. The consumption of indirect materials in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials C. The cost of direct labor incurred in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials D. The cost of indirect labor incurred in the manufacturing process. [ Choose ] Manufacturing overhead Selling, general and administrative expenses Work in process Cost of goods sold Finished goods Raw materials E. The allocation of manufacturing…arrow_forward
- Which one of the following is not a cost element in manufacturing a product? Office salaries Manufacturing overhead Direct materials Direct laborarrow_forwardQUESTION 5 Indicate whether each of the following costs incurred by a manufacturer would be considered a Product Cost or a Period Cost. If the cost is identified as a Product Cost, indicate whether it would be considered Direct Material, Direct Labor, or Manufacutring Overhead (MOH). The salary of the accounting manager A. Product - Direct Labor The wages of the assembly workers assembling tables B. Period The production supervisor's salary C. Product - Direct Materials D. Product - MOHarrow_forwardA 1.Describe the differences between process costing and job 5.4 costing.2. Distinguish between normal and abnormal losses and explain.3. Provide examples of industries that use process costing. 4. Why is cost accumulation easier with a process costing system compared with a job costing system? 5. What are equivalent units? Why are they needed with a process costing system?arrow_forward
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