Exam 1: Introduction to Financial Statements

The principal difference between a merchandising and a manufacturing income statement is the

Cotter pins and lubricants used irregularly in a production process are classified as

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

Direct materials and direct labor are the only product costs.

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $866,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000.Worth Company's cost of goods sold for the year is

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively.If direct materials used were $310,000, what was the cost of raw materials purchased?

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Which one of the following costs would not be inventoriable?

Product costs are also called inventoriable costs.

Assuming that the total manufacturing costs are $3,400,000, compute the cost of goods manufactured using the information below. Raw materials inventory, January 1 30,000 Raw materials inventory, December 31 60,000 Work in process, January 1 27,000 Work in process, December 31 18,000 Finished goods, January 1 60,000 Finished goods, December 31 48,000 Raw materials purchases 1,800,000 Direct labor 890,000 Factory utilities 225,000 Indirect labor 75,000 Factory depreciation 500,000 Operating expenses 630,000

Directing includes

Cost of goods sold

Manufacturing costs include

Which one of the following is not considered as material costs?

A manufacturing company calculates cost of goods sold as follows:

Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory \ 310,000 \ 260,000 Work in process inventory 300,000 160,000 Finished goods inventory 190,000 150,000 During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. Dolan Company's total manufacturing costs incurred in 2017 amounted to

The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

Sales commissions are classified as