Billboard advertising space would be period cost, not a product cost PDF

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Billboard advertising space would be period cost, not a product cost...

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Running head: BUS 3301 Financial Accounting

University of the People BUS 3301 Financial Accounting Written Assignment Unit 3 True/False Statement

Running head: BUS 3301 Financial Accounting Read the following statements and note by each, whether the statement is true or false. Restate the false statement in such a way make them true statements. 

Billboard advertising space would be period cost, not a product cost. (True)

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Beginning work in process, plus conversion costs, minus ending work in process, equals cost of goods manufactured. (False) Beginning work in process, plus the direct materials, plus the conversion cost, minus ending work in process, equals cost of the goods manufactured

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Conversion costs are always the same, no matter the level of output. (False) Conversion cost can vary with the level of the output.

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Production costs generally consist of prime costs plus manufacturing overhead. (True)

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Product costs attach can also be described as “inventoriable”. (True)

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The cost of air filters used in the paint shop of a manufacturing facility is a period cost because they are replaced monthly. (False) The cost of air filters used in the paint shop of a manufacturing facility is a product cost.

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Non-manufacturing costs for selling and general/administrative purposes are not part of factory overhead. (True)

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Manufacturing may have three inventory categories: raw material, finished goods, and cost of goods sold. (False) Manufacturers may have three inventory categories: raw materials, work in process and finished goods

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The cost of carbon fibre incorporated into the frame of a bicycle built by Tec Track Bikes is a product cost. (True)

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Prime costs include direct labor and manufacturing overhead. (False) Prime costs include direct labor and direct material

Running head: BUS 3301 Financial Accounting...