6. When the current year's ending inventory amount is overstated, the a. current year's cost of goods sold is overstated. b. current year's total assets are understated. c. current year's net income is overstated. d. next year's income is overstated. 7. Which of the following statements about manufacturing cost flows is falee a. Direct materials, direct labor, and manufacturing overhead are entered in the Work-in-Process Inventory account. b. The Finished-Goods Inventory account will contain entries that refleet the cost of goods sold during the period. c. The cost of units sold during the period will typically appear on the income statement. d. When a company sells goods that cost P54,000 for P60,000, the firm will enter P6,000 in an account entitled Profit on Sale.

6. When the current year's ending inventory amount is overstated, the a. current year's cost of goods sold is overstated. b. current year's total assets are understated. c. current year's net income is overstated. d. next year's income is overstated. 7. Which of the following statements about manufacturing cost flows is falee a. Direct materials, direct labor, and manufacturing overhead are entered in the Work-in-Process Inventory account. b. The Finished-Goods Inventory account will contain entries that refleet the cost of goods sold during the period. c. The cost of units sold during the period will typically appear on the income statement. d. When a company sells goods that cost P54,000 for P60,000, the firm will enter P6,000 in an account entitled Profit on Sale.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4PA: Manufacturing income statement, statement of cost of goods manufactured Several items are omitted...

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