A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true? a.The company will recognize $96,000 gross profit on the balance sheet. b.The company will increase finished goods by $54,000. c.The company will decrease finished goods by $54,000. d.The company will recognize sales on the balance sheet of $150,000.
A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true? a.The company will recognize $96,000 gross profit on the balance sheet. b.The company will increase finished goods by $54,000. c.The company will decrease finished goods by $54,000. d.The company will recognize sales on the balance sheet of $150,000.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...
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Question
A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true?
a.The company will recognize $96,000 gross profit on the balance sheet.
b.The company will increase finished goods by $54,000.
c.The company will decrease finished goods by $54,000.
d.The company will recognize sales on the balance sheet of $150,000.
The Darwin Company reports the following information:
Product costs are
Sales | $76,500 |
Direct materials used | 7,300 |
4,700 | |
Indirect labor | 5,900 |
Direct labor | 10,500 |
Factory rent | 4,200 |
Factory utilities | 1,200 |
Sales salaries expense | 15,600 |
Office salaries expense | 8,900 |
Indirect materials | 1,200 |
Product costs are
a.$24,500
b.$30,300
c.$35,000
d.$29,200
Which of the following are the two main types of cost accounting systems for manufacturing operations?
a.process cost and general accounting systems
b.job order and general accounting systems
c.job order cost and process cost systems
d.process cost and replacement cost systems
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