D101 Cost & Managerial Accounting UNIT 2 UPDATED ACTUAL
Questions and CORRECT Answers
You are working for a product manufacturer whose Direct materials and direct labor
bookkeeper is currently recording all costs and expenses 3 multiple choice options
incurred in manufacturing directly to generic accounts in
the general ledger instead of recording such costs by
product. The manufacturer would like to be able to trace
costs by product in the future.
Which costs can be specifically traced to a product and
then recorded by the bookkeeper if the manufacturer
decides to invest in and use a job order costing system
as a product costing tool?
You are working for a product manufacturer whose Identify the product or project, trace direct costs, and allocate overhead.
bookkeeper is currently recording all costs and expenses 3 multiple choice options
directly to generic accounts in the general ledger instead
of by product. The manufacturer would like to be able to
trace costs by product in the future and implement job
order costing.
What are the three steps required to implement a job
order costing system?
What is the correct sequence for the flow of material Raw materials inventory, work-in-process inventory, finished goods inventory, cost
costs through the production process? of goods sold
3 multiple choice options
Adam has now explained to the bookkeeper the correct Direct materials, direct labor, and manufacturing overhead
sequence for the flow of material costs through the 3 multiple choice options
production process. The next step in this education
process is for Adam to explain manufacturing costs to the
bookkeeper.
What are the three types of manufacturing costs
incurred in the manufacturing of each product?
You work for Alliah Company. Unfortunately, the Direct materials, direct labor, and manufacturing overhead
company uses a single-step income statement. You tell 3 multiple choice options
your boss that it would be much better to use a multistep
income statement. You explain that knowing the
company’s gross margin is extremely important. Your
boss then asks you the following question:
Which costs are included in the cost of goods sold
category?
Questions and CORRECT Answers
You are working for a product manufacturer whose Direct materials and direct labor
bookkeeper is currently recording all costs and expenses 3 multiple choice options
incurred in manufacturing directly to generic accounts in
the general ledger instead of recording such costs by
product. The manufacturer would like to be able to trace
costs by product in the future.
Which costs can be specifically traced to a product and
then recorded by the bookkeeper if the manufacturer
decides to invest in and use a job order costing system
as a product costing tool?
You are working for a product manufacturer whose Identify the product or project, trace direct costs, and allocate overhead.
bookkeeper is currently recording all costs and expenses 3 multiple choice options
directly to generic accounts in the general ledger instead
of by product. The manufacturer would like to be able to
trace costs by product in the future and implement job
order costing.
What are the three steps required to implement a job
order costing system?
What is the correct sequence for the flow of material Raw materials inventory, work-in-process inventory, finished goods inventory, cost
costs through the production process? of goods sold
3 multiple choice options
Adam has now explained to the bookkeeper the correct Direct materials, direct labor, and manufacturing overhead
sequence for the flow of material costs through the 3 multiple choice options
production process. The next step in this education
process is for Adam to explain manufacturing costs to the
bookkeeper.
What are the three types of manufacturing costs
incurred in the manufacturing of each product?
You work for Alliah Company. Unfortunately, the Direct materials, direct labor, and manufacturing overhead
company uses a single-step income statement. You tell 3 multiple choice options
your boss that it would be much better to use a multistep
income statement. You explain that knowing the
company’s gross margin is extremely important. Your
boss then asks you the following question:
Which costs are included in the cost of goods sold
category?
