Homework Answers
Answer : C) They Must be an integral part of the Finished Product and be a signification portion of the total product cost
Direct MAterials are the significant part included in the Prime Cost, total product cost and an integral part of the finished goods of the product. Conversion cost includes the cost incurred to convert the material into finished goods so Conversion cost areDirect labor and the Manufacturing overheads
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Calculator Which of the following must be true in order for materials to be classified as...
16. The cost of a manufactured product generally consists of which of the following costs? a...
16. The cost of a manufactured product generally consists of which of the following costs? a direct materials cost and factory overhead cost only b. direct labor cost and factory overhead cost only c. direct labor cost, direct materials cost, and factory overhead cost d. direct materials cost and direct labor cost only 17. Materials must have which two qualities in order to be classified as direct materials? a. They must be classified as both prime costs and conversion costs. b....
Match the term with the correct definition. Finished goods inventory Direct costs Work in process inventory...
Match the term with the correct definition. Finished goods inventory Direct costs Work in process inventory Product costs Statement of Cost of Goods Manufactured Period Cost A operating costs that are shown on the income statement in the period in which they are incurred B. Costs that are an integral part of the finished product and a significant portion of the total cost of the product C. Direct materials, direct labor and factory overhead D. Reports cost of goods manufactured...
Which of the following statements is true regarding Direct Materials, Direct Labor and Manufacturing Overhead applied....
Which of the following statements is true regarding Direct Materials, Direct Labor and Manufacturing Overhead applied. Multiple Choice Conversion costs are added to Finished Goods Inventory, while Direct materials are attached to Work in Process Inventory Direct Materials are first requisitioned to the manufacturing overhead account and then are applied to work in process, where direct labor and manufacturing overhead are then added, All three costs initially combined in a Work in Process Inventory account All three costs are treated...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory,...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory, May 1 Direct materials inventory, May 31 Work-in-process inventory, May 1 Work-in-process inventory, May 31 Finished goods inventory, May 1 Finished goods inventory, May 31 Direct materials purchased during May Direct labor costs, May Manufacturing overhead, May $ 17,600 15,600 9,000 5,600 53,300 72,000 83,200 60, 700 79,800 Required: a. Compute the total prime costs for the month of May. b. Compute the total...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory,...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory, May 1 Direct materials inventory, May 31 Work-in-process inventory, May 1 Work-in-process inventory, May 31 Finished goods inventory, May 1 Finished goods inventory, May 31 Direct materials purchased during May Direct labor costs, May Manufacturing overhead, May $ 18,500 15,800 8,600 6, 200 53,200 72,500 83,400 60,500 79,700 Required: a. Compute the total prime costs for the month of May. b. Compute the total...
Information about Morton Company for the month ending December 31, 2018, is as follows: Sales $650,000...
Information about Morton Company for the month ending December 31, 2018, is as follows: Sales $650,000 Cost of goods sold 452,000 Net operating income 35,000 Beginning inventories: Direct materials 50,000 Work in process 42,000 Finished goods 70,000 Ending direct materials is 20 percent smaller than beginning direct materials. Ending work in process is 10 percent more than the beginning work in process. Ending finished goods increased by $11,000 during the year. Prime costs and conversion costs are 70 percent and...
The following information comes from the accounting records for Chelsea, Inc., for May: Direct materials inventory,...
The following information comes from the accounting records for Chelsea, Inc., for May: Direct materials inventory, May 1 $ 18,200 Direct materials inventory, May 31 14,900 Work-in-process inventory, May 1 8,900 Work-in-process inventory, May 31 6,900 Finished goods inventory, May 1 54,500 Finished goods inventory, May 31 72,900 Direct materials purchased during May 84,300 Direct labor costs, May 60,600 Manufacturing overhead, May 80,900 Required: a. Compute the total prime costs for the month of May. b. Compute the total conversion...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory,...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory, May 1 $ 17,200 Direct materials inventory, May 31 15,100 Work-in-process inventory, May 1 8,300 Work-in-process inventory, May 31 6,600 Finished goods inventory, May 1 53,300 Finished goods inventory, May 31 71,600 Direct materials purchased during May 83,800 Direct labor costs, May 59,800 Manufacturing overhead, May 79,100 Required: a. Compute the total prime costs for the month of May. b. Compute the total conversion...
1. LO 41 Which of the following product situations is better suited to job order costing...
1. LO 41 Which of the following product situations is better suited to job order costing than to process conting? A Each product batch is exactly the same as the prior batch B. The costs are easily traced to a specific product. C. Costs are accumulated by department D. The value of work in process is based on assigning standard costs. 2. LO 41 A job order costing system is most likely used by which of the following? A. a...
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced...
Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in Process—Filling was as follows on January 1: Work in Process—Filling Department (2,200 units, 60% completed): Direct materials (2,200 x $12) $26,400 Conversion (2,200 x 60% x $7.8) 10,296 $36,696 The following costs were charged to Work...
16. The cost of a manufactured product generally consists of which of the following costs? a direct materials cost and factory overhead cost only b. direct labor cost and factory overhead cost only c. direct labor cost, direct materials cost, and factory overhead cost d. direct materials cost and direct labor cost only 17. Materials must have which two qualities in order to be classified as direct materials? a. They must be classified as both prime costs and conversion costs. b....
Match the term with the correct definition. Finished goods inventory Direct costs Work in process inventory Product costs Statement of Cost of Goods Manufactured Period Cost A operating costs that are shown on the income statement in the period in which they are incurred B. Costs that are an integral part of the finished product and a significant portion of the total cost of the product C. Direct materials, direct labor and factory overhead D. Reports cost of goods manufactured...
Which of the following statements is true regarding Direct Materials, Direct Labor and Manufacturing Overhead applied. Multiple Choice Conversion costs are added to Finished Goods Inventory, while Direct materials are attached to Work in Process Inventory Direct Materials are first requisitioned to the manufacturing overhead account and then are applied to work in process, where direct labor and manufacturing overhead are then added, All three costs initially combined in a Work in Process Inventory account All three costs are treated...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory, May 1 Direct materials inventory, May 31 Work-in-process inventory, May 1 Work-in-process inventory, May 31 Finished goods inventory, May 1 Finished goods inventory, May 31 Direct materials purchased during May Direct labor costs, May Manufacturing overhead, May $ 17,600 15,600 9,000 5,600 53,300 72,000 83,200 60, 700 79,800 Required: a. Compute the total prime costs for the month of May. b. Compute the total...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory, May 1 Direct materials inventory, May 31 Work-in-process inventory, May 1 Work-in-process inventory, May 31 Finished goods inventory, May 1 Finished goods inventory, May 31 Direct materials purchased during May Direct labor costs, May Manufacturing overhead, May $ 18,500 15,800 8,600 6, 200 53,200 72,500 83,400 60,500 79,700 Required: a. Compute the total prime costs for the month of May. b. Compute the total...
1. LO 41 Which of the following product situations is better suited to job order costing than to process conting? A Each product batch is exactly the same as the prior batch B. The costs are easily traced to a specific product. C. Costs are accumulated by department D. The value of work in process is based on assigning standard costs. 2. LO 41 A job order costing system is most likely used by which of the following? A. a...
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