Written assignment for financial accounting WA-wk33301 PDF

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Summary

Read the following statements and note by each, whether the statement is true or false. Restate the false statements in such a way as to make them true statements....

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Uopeople T1, 2021 BUS3301: Financial Accounting WA-WK 3: Management Decision Based On Accounting Decision Instructor: Armen Shahinyan Sept 17, 2021

Read the following statements and note by each, whether the statement is true or false. Restate the false statements in such a way as to make them true statements.

1 2

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

Comments True

Beginning work in process, plus conversion costs, minus ending work in process, equals cost of goods manufactured.

False

True: Cost of goods manufactured = Beginning work in process + Direct Materials + Conversion Cost (Direct Labor and Manufacturing Overhead) – Ending Work in Process.

3

Conversion costs are always the same, no matter the level of output.

False

True: Conversion costs may vary on the direct labor and manufacturing overhead involve. 4

Production costs generally consist of prime costs plus manufacturing overhead.

True

5

Product costs attach can also be described as "inventoriable."

True

6

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

False

True: The cost of air filters used in the paint shop of a manufacturing facility is a variable cost because they are replaced monthly. 7

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

True

8

Manufacturers may have three inventory categories: raw materials, finished goods, and cost of goods sold.

False

True: Manufacturers may have three inventory categories: raw materials, finished goods, and work-in-process.

9

The cost of carbon fiber incorporated into the frame of a bicycle built by TecTrack Bikes is a product cost.

True

10

Prime costs include direct labor and manufacturing overhead.

False

Prime costs include direct labor and direct materials.

Reference Walther L (2012). Introduction to Managerial Accounting. http://www.principlesofaccounting.com/chapter-17/...