Financial Work Essay Example
1.Amounts debited to the Work in Process Inventory account may best be described as:
Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead.
The cost of finished goods manufactured during the period.
Total manufacturing costs charged to production.
The cost of goods sold.
2.Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?
The cost of compliance with federal factory safety regulations.
Depreciation expense on factory equipment.
The cost of grease used to lubricate factory equipment.
The cost of wood used in furniture construction.
3.Which of the following should not be classified as a manufacturing cost?
Indirect factory labor costs, such as salaries of plant security guards.
Direct materials used in the production process.
Utility bills related to factory operations.
Commissions paid to salespeople.
4.Which of the following is not a product cost?
Direct materials used.
Direct labor costs applicable to production.
Manufacturing overhead.
Advertising expense.
5.When inventory is sold:
Cost of Goods Sold is credited.
Work-in-Process Inventory is credited.
Finished Goods Inventory is credited.
Finished Goods Inventory is debited.
6.Costs that are traceable to a particular unit and are inventoriable are called:
Period costs
Product costs
Overhead costs
Job costs
7.If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?
Net income will be overstated.
Net income will be understated.
Net income will be unaffected.
Net income will be understated only if inventory levels rise.
8.Manufacturing companies normally have three types of inventory:
Direct materials, direct labor, and manufacturing overhead.
Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead.
The cost of finished goods manufactured during the period.
Total manufacturing costs charged to production.
The cost of goods sold.
2.Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?
The cost of compliance with federal factory safety regulations.
Depreciation expense on factory equipment.
The cost of grease used to lubricate factory equipment.
The cost of wood used in furniture construction.
3.Which of the following should not be classified as a manufacturing cost?
Indirect factory labor costs, such as salaries of plant security guards.
Direct materials used in the production process.
Utility bills related to factory operations.
Commissions paid to salespeople.
4.Which of the following is not a product cost?
Direct materials used.
Direct labor costs applicable to production.
Manufacturing overhead.
Advertising expense.
5.When inventory is sold:
Cost of Goods Sold is credited.
Work-in-Process Inventory is credited.
Finished Goods Inventory is credited.
Finished Goods Inventory is debited.
6.Costs that are traceable to a particular unit and are inventoriable are called:
Period costs
Product costs
Overhead costs
Job costs
7.If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?
Net income will be overstated.
Net income will be understated.
Net income will be unaffected.
Net income will be understated only if inventory levels rise.
8.Manufacturing companies normally have three types of inventory:
Direct materials, direct labor, and manufacturing overhead.