module 3

The principal difference between the income statements of a merchandising company's and a manufacturing company is the 1. cost of goods sold section. 2. operating income section. 3. operating expense section. 4. revenue section.

1. Cost of Goods Sold Section

What is work in process inventory generally described as? 1. Costs applicable to units that have been started in production but are only partially completed. 2.Costs associated with the end stage of manufacturing that are almost always complete and ready for customers. 3. Costs strictly associated with direct labor. 4. Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks.

1. Costs applicable to units that have been started in production but are only partially completed.

sales commissions are classified as 1. overhead cost 2. period costs 3. product costs 4. indirect labor

2. period costs

which of the following is not another name for the term manufacturing overhead? 1. factory overhead 2. pervasive costs 3. burden 4. indirect manufacturing costs

2. pervasive costs

If cost of goods manufactured is less than cost of goods sold, which of the following is correct? 1.Finished Goods Inventory has increased. 2.Work in Process Inventory has increased. 3.Finished Goods Inventory has decreased. 4.Work in Process Inventory has decreased.

Finished Goods Inventory has decreased.

cost of goods manufactured is calculated as: ​

beginning wip+direct materials used+direct labor+manufacturing overhead-ending wip

which of the following is not a manufacturing cost category? 1. cost of goods sold 2. direct materials 3. direct labor 4. manufacturing overhead

cost of goods sold

Cost of goods sold 1. only appears on merchandising companies' income statements. 2.only appears on manufacturing companies' income statements. 3. appears on both manufacturing and merchandising companies' income statements. 4. is calculated exactly the same for merchandising and manufacturing companies.

3. appears on both manufacturing and merchandising companies' income statements.

A manufacturing company reports cost of goods manufactured as a(n) 1. current asset on the balance sheet. 2. administrative expense on the income statement. 3. component in the calculation of cost of goods sold on the income statement. 4. component of the raw materials inventory on the balance sheet.

3. component in the calculation of cost of goods sold on the income statement.

when goods are sold, their inventoriable costs are transferred to: 1. selling expenses 2. gross profit 3. cost of goods sold 4. sales revenue

3. cost of goods sold

product costs are also called: 1. direct costs 2. overhead costs 3. inventoriable costs 4. capitalization costs

3. inventoriable costs

on the costs of goods manufactured schedule, the ending raw materials inventory is reported as a(n): 1. addition to raw materials purchased 2. addition to raw materials available for use 3. subtraction from raw materials available for use 4. component of manufacturing overhead

3. subtraction from raw materials available for use

​A manufacturing company calculates cost of goods sold as follows: 1. Beginning FG inventory + cost of goods purchased - ending FG inventory. 2. Ending FG inventory - cost of goods manufactured + beginning FG inventory. 3. Beginning FG inventory - cost of goods manufactured - ending FG inventory. 4. Beginning FG inventory + cost of goods manufactured - ending FG inventory.

4. Beginning FG inventory + cost of goods manufactured - ending FG inventory.

cost of goods manufacturing company is analogous to: 1. ending inventory in a manufacturing company 2. beginning inventory in a merchandising company 3. cost of goods available for sale in a merchandising company 4. cost of goods purchased in a merchandising company

4. cost of goods purchased in a merchandising company