Ch. 18 Managerial Accounting Concepts and Principles Part 3 Quiz – Flashcards
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In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?
answer
Cost of goods manufactured
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Which of the following accounts will be found on the income statement?
answer
cost of merchandise sold
question
Cost of Materials Used $40,000
Direct Labor costs $55,000
Factory Overhead $32,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
What is Cost of Goods Manufactured?
answer
$137,000
40,000 + 55,000 + 32,000 + 28,000 - 18,000
question
Cost of Materials Used $40,000
Direct Labor costs $55,000
Factory Overhead $32,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
Finished Goods,beg. $28,000
Finished Goods, end. $18,000
What is Cost of Goods Sold?
answer
$147,000
28,000 + 137,000 - 18,000
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Beginning Raw Materials Inventory $75,000
Materials purchased $20,000
Ending Raw Materials Inventory $30,000
How much are Raw Materials Used?
answer
$65,000
75,000 + 20,000 - 30,000
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A company manufactured 50,000 units of a product at a cost of $250,000. They sold 40,000 units for $10 each. What is Gross Margin?
answer
$200,000
250,000 - 50,000
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The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.
answer
True
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Only the value of the inventory that is sold will appear in the income statement.
answer
True
