Quiz 5 Acctounting

Use the information provided for Darwin Company to answer the question that follow. Darwin Company Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 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 Darwin Company's product costs are

$35,000 Product Costs = Direct Materials Cost + Direct Labor Cost + Factory Overhead Cost = $7,300 + $10,500 + $4,700 + $5,900 + $4,200 + $1,200 + $1,200 = $35,000

Which of the following is true of preparing managerial accounting reports?

Managerial accounting reports may be prepared at fixed intervals or on an as-needed basis.

A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?

The company will decrease finished goods by $54,000.

Direct labor and direct materials are

product costs and expensed when the goods are sold

Which of the following manufacturing costs is an indirect cost of producing a product?

oil lubricants used for factory machinery

Period costs include

operating costs that are shown on the income statement in the period in which they are incurred

Managerial accounting reports are

prepared according to management needs

Cost of goods manufactured is equal to

total manufacturing costs plus beginning work in process inventory less ending work in process inventory

Which of the following are reported on the income statement as part of cost of goods?

cost of goods manufactured

Which of the following accounts will not be found on the statement of cost of goods manufactured?

cost of goods sold