Question

In: Accounting

Which of the following is the correct flow of manufacturing costs?

Which of the following is the correct flow of manufacturing costs? work in process, finished goods, raw materials, cost of goods sold raw materials, finished goods, cost of goods sold, work in process cost of goods sold, raw materials, work in process, finished goods raw materials, work in process, finished goods, cost of goods sold

Which of the following is the correct flow of manufacturing costs? 

  • work in process, finished goods, raw materials, cost of goods sold 

  • raw materials, finished goods, cost of goods sold, work in process 

  • cost of goods sold, raw materials, work in process, finished goods 

  • raw materials, work in process, finished goods, cost of goods sold


Which of the following costs are not included in finished goods inventory? 

  • direct materials

  • direct labor

  • chief financial officer's salary

  • factory overhead


For which of the following businesses would the job order cost system be appropriate?

  • Lumber mill

  • hospital 

  • oil refinery

  • canned soup processor


Solutions

Expert Solution

Answer:-

1. The correct flow of Manufacturing cost must be "Raw Materials>>Work In Process>>Finished Goods>>Cost of Goods Sold" as this the flow of Production process as well in Manfacturing Industries.

2. "Cheif Financial Officer;s Salary" must not be included in the valuation of Fished Goods Invesntory as this is an Indirect Expense and only direct expenses must be included as a cost for valuation purposes.

3. Job order costing or job costing is a system for assigning manufacturing costs to an individual product or batches of products. Generally, the job order costing system is used only when the products manufactured are sufficiently different from each other. (When products are identical or nearly identical, the process costing system will likely be used.)

Since there is a significant variation in the products manufactured, the job order costing system will create a job cost record for each item, job or special order. The job cost record will report the direct materials and direct labor actually used plus the manufacturing overhead assigned to each job.

So Answer must be "Lumber Mill"


Related Solutions

Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct...
Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $69,800 of indirect materials) $753,500 Direct labor (including $104,700 maintenance salaries) 697,700 Factory overhead: Supervisor salaries—plant 641,900 Heat, light, and power—plant 174,400 Sales salaries 432,600 Promotional expenses 390,700 Insurance and property taxes—plant 188,400 Insurance and property taxes—corporate offices 272,100 Depreciation—plant and equipment 153,500 Depreciation—corporate offices 111,600...
Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct...
Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $73,400 of indirect materials) $792,800 Direct labor (including $110,100 maintenance salaries) 734,100 Factory overhead: Supervisor salaries—plant 675,400 Heat, light, and power—plant 183,500 Sales salaries 455,100 Promotional expenses 411,100 Insurance and property taxes—plant 198,200 Insurance and property taxes—corporate offices 286,300 Depreciation—plant and equipment 161,500 Depreciation—corporate offices 117,500...
Which of the following statements concerning cash flow planning is correct? The goal is to maximize...
Which of the following statements concerning cash flow planning is correct? The goal is to maximize net cash flow. The goal should be to invest for the future, rather than maintaining current lifestyle. The goal should be to identify strengths and weaknesses in the client’s cash flows. The goal is to optimize net cash flow. Banks will typically grant home equity loans or lines of credit up to what loan-to-value percentage? 20 percent 40 percent 60 percent 80 percent PITI...
Which of the following statements concerning cash flow planning is correct? The goal is to maximize...
Which of the following statements concerning cash flow planning is correct? The goal is to maximize net cash flow. The goal should be to invest for the future, rather than maintaining current lifestyle. The goal should be to identify strengths and weaknesses in the client’s cash flows. The goal is to optimize net cash flow. 2. All the following are advantages of budgeting, EXCEPT: It helps reveal inefficient uses of resources. It fosters creativity and judicious risk-taking. It provides a...
Which one of the following statements are correct? In a counter-flow heat exchanger, the exit temperature...
Which one of the following statements are correct? In a counter-flow heat exchanger, the exit temperature of the cold fluid can never reach the exit temperature of the hot fluid. In a parallel flow heat exchanger the exit temperature of the cold fluid is always greater than the exit temperature of the hot fluid. In a counter flow heat exchanger the exit temperature of the cold fluid is always greater than the exit temperature of the hot fluid. In a...
Which of the following is considered an incremental cash flow? a. All costs associated with the...
Which of the following is considered an incremental cash flow? a. All costs associated with the project that have been incurred prior to the time the analysis is being conducted. b. Interest on funds borrowed to help finance the project. c. The end-of-project recovery of any additional net operating working capital required to operate the project. d. Expenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes.
Describe the flow of manufacturing costs in a normal job costing system.
Describe the flow of manufacturing costs in a normal job costing system.
Which of the following are direct costs of bankrupcy​? ​(Choose all correct​ responses.) A. Loss of...
Which of the following are direct costs of bankrupcy​? ​(Choose all correct​ responses.) A. Loss of customers and suppliers. B. Fire sales of assets. C. Payments to legal and accounting experts. D. Payments to auctioneers and others with experience in selling distressed assets.
Which of the following about flotation costs is least correct? Increase the WACC for the project...
Which of the following about flotation costs is least correct? Increase the WACC for the project Decrease the NPV of the project Increase the initial cost of the investment The discount rate used in capital budgeting should equal the Weighted average cost of capital Market rate of return A risk adjusted weighted average cost of capital
Which of the following are fixed costs for a business? Select all correct answers Group of...
Which of the following are fixed costs for a business? Select all correct answers Group of answer choices Utilities Loan Payments Property Taxes Production Material Equipment Rental Commissions Ingredients in a cake Transaction Fees
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT