(1) Manufacturing costs are regarded as expenses of the current period and are expensed when incurred (2) raw materials inventory refers to the direct materials on hand and available for use in the manufacturing process. a. BOTH statements are TRUE b. 1st statement TRUE c. statement FALSE d. BOTH statements are FALSE

(1) Manufacturing costs are regarded as expenses of the current period and are expensed when incurred (2) raw materials inventory refers to the direct materials on hand and available for use in the manufacturing process. a. BOTH statements are TRUE b. 1st statement TRUE c. statement FALSE d. BOTH statements are FALSE

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 1CE

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For external reporting purposes, costs must be classified into only three categories. (2) Cost of goods manufactured represents the cost of direct materials, direct labor, and overhead incurred during the current accounting period. a. BOTH statements are FALSE b. BOTH statements are TRUE c. 1st statement FALSE d. 1st statement TRUE
1. Product costs are expensed on the balance sheet statement in the period incurred (true or false). 2. Direct labor is period Cost (true or false) 3. Non-manufacturing costs are not treated as period costs (true or false)
I.-The Materials Inventory account will be debited for the materials used in production II.-The Material Inventory account will be credited for materials purchases. a. Both statements are true b. Both statements are false c. Only statement I is true d. Only statement II is true
[S1] Costs that are expensed when incurred are called period costs. [S2] In financial accounting, all manufacturing costs are product costs. a. both are trueb. both are falsec. S1 is trued. S2 is true
True or False 1. The weighted average method includes the work in process beginning inventory cost in computing the unit cost 2. The weighted average method assumed that units in work in process beginning inventory are the first units to be transferred 3. The FIFO method assumed that units in work in process beginning inventory are the first units to be transferred.
[S1] A cost is either direct or indirect. The classification changes if the costs object changes. [S2] Manufacturing overhead is an indirect cost with respect to units of product. a. both are trueb. both are falsec. S1 is trued. S2 is true
TRUE OR FALSE STATEMENT 1: If the ending inventory of finished goods is understated, net income will be overstated. STATEMENT 2: Manufacturing overhead combined with direct materials is known as conversion cost.
1. State whether the following questions is True (T) or False (F): a. Cost accounting looks at the company as a whole and not at the various units, jobs or processes. b. Financial accounting is concerned with how and why profits arise. c. Cost accounting depends entirely on historical information.
Statement 1: Cost Accounting relates to the conventional costing methods and techniques in accumulating the cost of a product, process, project or service, including both product and period cost in accumulating cost.Statement 2: Cost Accounting aims to reflect the correct complete financial picture/information of the entity to the different shareholders. a. Statement 1 is False, Statement 2 is True b. Statement 1 is True, Statement 2 is False c. Both statements are true d. Both statements are false
1. Distinguish between financial and managerial accounting for (a) first users of reports, (b) types and frequency of reports, and (c) purpose of reports. 2. How are manufacturing costs classified?
Managerial Accounting - TRUE OR FALSE All non-manufacturing costs are recorded as an expense in the income statement in the period incurred.
Kindly answer questions 1-3: 1.) Discretionary costs are costs that must be incurred because of past decision, contractual agreement, and government regulations. a. true b. false 2.) Product costs: a. are always expensed in the same period in which they are incurred. b. are inventoriable costs. c. vary directly with changes in cost driver. d. are always charged to an asset account in the same period in which they are incurred. 3. Controllable costs are cost items which can be regulated depending on the level of management one is in. a. True b. False b. False