ACCOUNTING 211 EXAM 1 FULLY SOLVED TEST
PAPER GRADED A+
◉ direct materials.
Answer: raw materials that can be physically and directly associated
with the finished product during the manufacturing process
◉ direct labor.
Answer: work of factory employees that can be physically and
directly associated with converting raw materials into finished
goods
◉ indirect labor.
Answer: their efforts have no physical associated with the finished
product
ex.) wages of maintenance people, timekeepers, and supervisors
◉ manufacturing overhead.
Answer: costs that are indirectly associated with the manufacture of
the finished product
-includes indirect materials, indirect labor, depreciation on factory
buildings and machinery, insurance, taxes, and maintenance on
factory facilities
,◉ product costs.
Answer: include each of the manufacturing elements (direct
materials, direct labor, and manufacturing overhead)
-are not expensed until company sells the finished goods inventory
◉ period costs.
Answer: -matched with the revenue of a specific time period
-relate to non-manufacturing costs
include selling and administrative expenses
◉ cost of goods sold for a merchandiser.
Answer: = beginning inventory + cost of goods purchased - ending
inventory
◉ cost of goods sold for a manufacturer.
Answer: = beginning finished goods inventory + cost of goods
manufactured - finished goods inventory
◉ total cost of work in process formula.
Answer: = beginning work in process inventory + total current
manufacturing costs
, ◉ cost of goods manufactured formula.
Answer: = total cost of work in process - ending work in process
inventory
◉ 3 balance sheet inventory accounts for a manufacturer.
Answer: 1. raw materials
2. work in process
3. finished goods
◉ 3 reasons the competitive environment in the US is changing.
Answer: 1. changing regulations
2. intensified global competition
3. technological changes
◉ value chain.
Answer: all activities associated with providing a product or service
ex.) R&D, raw materials, production, sales and marketing, delivery,
and customer relations
◉ just-in-time (JIT) inventory method.
Answer: goods are manufactured or purchased just in time for use
PAPER GRADED A+
◉ direct materials.
Answer: raw materials that can be physically and directly associated
with the finished product during the manufacturing process
◉ direct labor.
Answer: work of factory employees that can be physically and
directly associated with converting raw materials into finished
goods
◉ indirect labor.
Answer: their efforts have no physical associated with the finished
product
ex.) wages of maintenance people, timekeepers, and supervisors
◉ manufacturing overhead.
Answer: costs that are indirectly associated with the manufacture of
the finished product
-includes indirect materials, indirect labor, depreciation on factory
buildings and machinery, insurance, taxes, and maintenance on
factory facilities
,◉ product costs.
Answer: include each of the manufacturing elements (direct
materials, direct labor, and manufacturing overhead)
-are not expensed until company sells the finished goods inventory
◉ period costs.
Answer: -matched with the revenue of a specific time period
-relate to non-manufacturing costs
include selling and administrative expenses
◉ cost of goods sold for a merchandiser.
Answer: = beginning inventory + cost of goods purchased - ending
inventory
◉ cost of goods sold for a manufacturer.
Answer: = beginning finished goods inventory + cost of goods
manufactured - finished goods inventory
◉ total cost of work in process formula.
Answer: = beginning work in process inventory + total current
manufacturing costs
, ◉ cost of goods manufactured formula.
Answer: = total cost of work in process - ending work in process
inventory
◉ 3 balance sheet inventory accounts for a manufacturer.
Answer: 1. raw materials
2. work in process
3. finished goods
◉ 3 reasons the competitive environment in the US is changing.
Answer: 1. changing regulations
2. intensified global competition
3. technological changes
◉ value chain.
Answer: all activities associated with providing a product or service
ex.) R&D, raw materials, production, sales and marketing, delivery,
and customer relations
◉ just-in-time (JIT) inventory method.
Answer: goods are manufactured or purchased just in time for use
