Part 2:
Explain the following managerial accounting terms and provide areal-life example for each
accounting term:
administrative expenses and selling expenses
. Explain why each accounting term is
either classified as a product cost or period cost.
ï·
Part 3:
Explain the following inventory account and provide a real-lifeexample from three (3) different
manufacturing companies:
raw materials inventory
.
ï·
Part 4:
Explain the following inventory account and provide a real-lifeexample from three (3) different
manufacturing companies:
work-in-process inventory
.
ï·
Part 5:
Explain the following inventory account and provide a real-lifeexample from three (3) different
manufacturing companies:
finished goods inventory
.
ï·
Part 6:
Explain what financial statement
inventory costs
are capitalized to and why. Explain when
inventory costs are incurred as an expense. What account is usedto classify inventory costs as an
expense?
Part 2:
Explain the following managerial accounting terms and provide areal-life example for each
accounting term:
administrative expenses and selling expenses
. Explain why each accounting term is
either classified as a product cost or period cost.
ï·
Part 3:
Explain the following inventory account and provide a real-lifeexample from three (3) different
manufacturing companies:
raw materials inventory
.
ï·
Part 4:
Explain the following inventory account and provide a real-lifeexample from three (3) different
manufacturing companies:
work-in-process inventory
.
ï·
Part 5:
Explain the following inventory account and provide a real-lifeexample from three (3) different
manufacturing companies:
finished goods inventory
.
ï·
Part 6:
Explain what financial statement
inventory costs
are capitalized to and why. Explain when
inventory costs are incurred as an expense. What account is usedto classify inventory costs as an
expense?
Related questions
1.) When products held in inventory are sold:
A.)Cost of Goods Sold is credited.
B.)Work in Process Inventory is credited.
C.)Finished Goods Inventory is credited.
D.)Finished Goods Inventory is debited.
2.)Since manufacturing costs (direct materials, direct labor,and overhead) are incurred in the process of manufacturing units ofproduct, these costs are credited t
| A.) | The Direct Materials Inventory, Direct Labor, and ManufacturingOverhead accounts respectively. |
| B.) | Liability accounts. |
| C.) | The Work in Process Inventory account. |
| D.) | The Cost of Goods Sold account. |
3.)Management accounting systems are designed to assistorganizations in the performance of all of the following functionsexcept:
| A.) | The assignment of decision-making authority over companyassets. |
| B.) | Planning and decision-making. |
| C.) | Monitoring, evaluating, and rewarding performance. |
| D.) | The preparation of income tax returns. |
4.)In a schedule of cost of finished goods manufactured, thefigure for total manufacturing costs:
| A.) May be less than the cost of direct materials used. | |
| B.) May be less than the direct labor costs assigned toproduction. | |
| C.) May be less than the manufacturing overhead applied toproduction. | |
| D.) May be less than the cost of finished goodsmanufactured. |
5.) When a manufacturing company purchases raw materials orcomponent parts to be used in manufacturing finished goods, thesecosts are initially debited to:
| A.) Expense accounts. | |
| B.) Raw Materials Inventory. | |
| C.) Finished Goods Inventory. | |
| D.) Manufacturing Overhead. |
6.) The wages paid to employees working directly on a company'sproducts would be shown as a:
| A.) Credit to Direct Labor. | |
| B.) Debit to Direct Labor. | |
| C.) Credit to Work in Process. | |
| D.) Debit to Manufacturing Overhead. |
7.) Amounts credited to the Work in Process inventory accountmay best be described as:
| A.) The cost of finished goods manufactured. | |
| B.) Total manufacturing costs charged to production. | |
| C.) The cost of goods sold. | |
| D.) Direct materials purchased, direct labor costs paid, andpayments for items classified as manufacturing overhead. |
