Complete the following:
1 List a particular cost for Boeing which manufactures airplanes. Please identify each cost as:
A. Product Cost
B. Period Cost
1. Tires
2. Depreciation on the factory building
3. Accountant's salary
4. Selling costs
5. Wages of a assembly mechanic
6. Depreciation on the office building
7. Administrative costs
8. Utilities costs on the factory building
9 list a particular cost for Tasty Baking Company which manufacture cakes and snack pies known as Tastykakes. Please identify each cost as:
A. Direct Materials
B. Direct Labor
C. Factory Overhead
D. Period Costs
9. Frosting or icing
10. Fruit filling
11. Wages of factory supervisor
12. Wages of a baker
13. Advertising costs
14. CEO's salary
15. Sales staff wages
16. Flour
17. Property taxes on the factory building
18. Wages of an employee in the mixing department
21. The cost of a manufactured product generally consists of which of the following costs?
A. direct materials cost and factory overhead costs
B. direct labor cost and factory overhead costs
C. direct labor cost, direct materials cost, and factory overhead cost
D. direct materials cost and direct labor cost
22. Costs that are treated as assets until the product is sold are called:
A. product costs
B. period costs
C. conversion costs
D. selling expense
23. A manufacturing business typically has the following three types of inventory classifications: raw materials, work-in-process, and finished goods
A. true
B. false
24. Which of the following cost systems would most likely be used by a home builder?
A. job order cost system
B. general cost system'
C. replacement cost system
D. process cost system
25. The function of a cost accounting system (i.e, job-order or process cost system) is to value inventory and cost of good sold.
A. True
B. False
26. When compared to financial accounting, managerial accounting is less rules based and more subjective.
A. True
B. False
27. Merchandising businesses take raw materials, direct labor, and factory overhead and produce a product.
A. True
B. False
Acme Manufacturing had the following transactions:
A. Purchased $60,000 of raw materials.
B. Transferred $40,000 of raw materials into the production process.
C. Incurred $50,000 of direct labor costs.
D. Applied $20,000 of factory overhead.
E. Transferred $100,000 to finished goods.
F. Sold goods costing $80,000 for $140,000.
G. Incurred $10,000 of selling costs.
H. Incurred $5,000 of administrative costs.
28. Net income for Acme Manufacturing was:
A. $140,000
B. $60,000
C. $45,000
D. $50,000
29. TOTAL inventory costs remaining are:
A. $20,000
B. $10,000
C. $50,000
D. $60,000
30. The payment of cash (or the commitment to pay cash in the future) for the purpose of generating revenues is known as:
A. Financial Accounting
B. Managerial Accounting
C. A Cost
D. A Manufacturing Business