Financial Work free essay sample

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. We will write a custom essay sample on Financial Work or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 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. Materials, work in process, and finished goods. Work in process, finished goods, and returned merchandise. Economy, standard, and deluxe. 9. The salaries paid to employees working directly on a companys products would be shown as a: Credit to Direct Labor Debit to Direct Labor Credit to Work-in-Process Debit to Manufacturing Overhead 10.In a manufacturing company, the cost of goods sold is equal to: The beginning inventory of finished goods, plus net purchases, less the ending inventory of finished goods. The sum of the manufacturing costs charged (debited) to the Work-in-Process Inventory account during the period. The costs of direct materials, direct labor, and manufacturing overhead incurred in manufacturing the goods sold during the period. The beginning inventory of work in process, plus total manufacturing costs for the period, less the ending inventory of work in process. 11.If it is the first year of operations and the cost of all work-in-process during the year is $940,000 and the cost of finished goods manufactured is $970,000, what is the value of the ending work-in-process inventory? $0. $30,000. some other amount. this is an impossible situation. 12. The cost of the employee who installs the leather on the seats of a new automobile would be considered Manufacturing overhead Indirect labor Direct material Direct labor 13. When goods are completed and come off the assembly line Cost of Goods Sold is debited and Finished Goods Inventory is credited.Work-in-Process Inventory is debited and Finished Goods Inventory is credited. Finished Goods Inventory is debited and Cost of Goods Sold is credited. Work-in-Process Inventory is credited and Finished Goods Inventory is debited. 14. The cost of the employee who computes total manufacturing costs would be considered: Direct labor Indirect labor Manufacturing overhead Administrative costs 15. York Co. s ending inventory of work in process is twice as large as at the beginning of the period. Therefore: The ending inventory of finished goods must be larger than the beginning inventory of finished goods. Total manufacturing costs for the period must exceed the cost of finished goods manufactured. Total manufacturing costs for the period must exceed the cost of goods sold. The cost of finished goods manufactured must be smaller than the cost of goods sold. 16. A job cost sheet usually contains a record of each of the following except: The cost of direct materials charged to a particular job. The overhead costs actually incurred on a particular job. The cost of direct labor charged to a particular job. The overhead cost applied to a particular jo De rest is er niet, toedels