Question Details

Whichtypeofinventoryisnormallysoldtootherorganizations



1.	Productcostsareconvertedfromcosttoexpensewhen
a.	unitsarecompleted.
b.	materialsarepurchased.
c.	unitsaresold.
d.	materialsarerequisitioned.

2.	Acompanyhaspurchasedsomesteeltouseintheproductionofsteelrailings.IfthissteelhasNOTbeenputintoproduction,itwouldbeclassifiedas
a.	finishedgoodsinventory.
b.	factorysupplies.
c.	work-in-processinventory.
d.	directmaterialsinventory.

3.	Theincomestatementpreparedforexternalreportingis
a.	basedonafunctionalclassification.
b.	referredtoasabsorption-costingincome.
c.	calledfull-costingincome.
d.	alloftheabove.

4.	WhichofthefollowingcostswouldNOTbeincludedincalculatinginventoryvaluesundertheabsorption-costingbasis?
a.	directmaterials
b.	fixedoverhead
c.	sellingandadministrativeexpenses
d.	directlabor

5.	Whencalculatingtheabsorption-costingincomeforexternalreporting,all
a.	manufacturingcostsultimatelybecomenonmanufacturingcosts.
b.	manufacturingcostsareproductcostsandproductcostsareneverexpensed.
c.	costsofsellingmanufacturedproductsareclassifiedasproductcosts.
d.	sellingandadministrativecostsareclassifiedasnonmanufacturingcosts.

6.	WhichofthefollowingaccountswouldappearonthefinancialstatementsofONLYamanufacturingfirm?
a.	materialsinventory
b.	bondspayable
c.	prepaidinsurance
d.	retainedearnings

7.	Whichtypeofinventoryisnormallysoldtootherorganizations?
a.	directmaterials
b.	factorysupplies
c.	workinprocess
d.	finishedgoods

8.	TherecordsofCustomChoppers,Inc.forSeptember2016showsthefollowinginformation:

Sales	$820,000
Sellingandadministrativeexpenses	140,000
Directmaterialspurchases	176,000
Directlabor	200,000
Factoryoverhead	270,000
Directmaterials,September1	24,000
Workinprocess,September1	50,000
Finishedgoods,September1	46,000
Directmaterials,September30	28,000
Workinprocess,September30	56,000
Finishedgoods,September30	38,000
	
ThenetincomeforthemonthofSeptemberis
a.$644,000.	
b.$36,000.	
c.$636,000.	
d.$180,000.	




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help