LSU ACCT 2101 Exam 1/Midterm 1
QUESTIONS WELL ANSWERED
GRADED A+
Managements activities (3) - CORRECT ANSWER ✔✔Planning, Directing, Controlling
Manufacturing costs (3) - CORRECT ANSWER ✔✔direct materials, direct labor, manufacturing
overhead
2 characteristics of indirect materials - CORRECT ANSWER ✔✔1. Do not physically become part
of the finished product
2. Cannot be feasibly associated with the finished product
Counted as manufacturing overhead
Indirect Labor (2) - CORRECT ANSWER ✔✔1. Consists of wages of maintenance people,
timekeepers, and supervisors.
2. Efforts have no physical association with the finished product
(Is considered a part of manufacturing overhead)
Manufacturing overhead includes... (3) - CORRECT ANSWER ✔✔1. indirect materials
2. indirect labor
3. Factory related costs (depreciation on factory buildings and machines)
4. insurance, taxes, and maintenance on factory facilities.
, Product Costs - CORRECT ANSWER ✔✔costs that are a necessary and integral part of producing
the finished product (become expenses when the company sells the finished goods)
Period Costs - CORRECT ANSWER ✔✔Include selling and administrative expenses. Are not one
of the three manufacturing costs
Income statement for cost of goods sold for merchandiser - CORRECT ANSWER ✔✔Add
beginning inventory to the cost of goods purchased and subtract the ending inventor
Income statement for cost of goods sold for manufacturer - CORRECT ANSWER ✔✔Add the
beginning finished goods inventory to the cost of goods manufactured and subtract ending
finished goods inventory
cost accounting - CORRECT ANSWER ✔✔involves measuring, recording, and reporting product
costs; Both the total cost and the unit cost of each product are determined from the
accumulated data.
cost accounting info. (2) - CORRECT ANSWER ✔✔1. Use a perpetual inventory system
2. Are of two basic types:
job order cost, process cost system
Product cost systems (2) - CORRECT ANSWER ✔✔1. Are used when a series of connected
manufacturing processes or departments produce a large volume of similar products
2. Account for and accumulate product-related costs for a period of time
job order costing - CORRECT ANSWER ✔✔a costing system used in situations where many
different products, jobs, or services are produced each period
QUESTIONS WELL ANSWERED
GRADED A+
Managements activities (3) - CORRECT ANSWER ✔✔Planning, Directing, Controlling
Manufacturing costs (3) - CORRECT ANSWER ✔✔direct materials, direct labor, manufacturing
overhead
2 characteristics of indirect materials - CORRECT ANSWER ✔✔1. Do not physically become part
of the finished product
2. Cannot be feasibly associated with the finished product
Counted as manufacturing overhead
Indirect Labor (2) - CORRECT ANSWER ✔✔1. Consists of wages of maintenance people,
timekeepers, and supervisors.
2. Efforts have no physical association with the finished product
(Is considered a part of manufacturing overhead)
Manufacturing overhead includes... (3) - CORRECT ANSWER ✔✔1. indirect materials
2. indirect labor
3. Factory related costs (depreciation on factory buildings and machines)
4. insurance, taxes, and maintenance on factory facilities.
, Product Costs - CORRECT ANSWER ✔✔costs that are a necessary and integral part of producing
the finished product (become expenses when the company sells the finished goods)
Period Costs - CORRECT ANSWER ✔✔Include selling and administrative expenses. Are not one
of the three manufacturing costs
Income statement for cost of goods sold for merchandiser - CORRECT ANSWER ✔✔Add
beginning inventory to the cost of goods purchased and subtract the ending inventor
Income statement for cost of goods sold for manufacturer - CORRECT ANSWER ✔✔Add the
beginning finished goods inventory to the cost of goods manufactured and subtract ending
finished goods inventory
cost accounting - CORRECT ANSWER ✔✔involves measuring, recording, and reporting product
costs; Both the total cost and the unit cost of each product are determined from the
accumulated data.
cost accounting info. (2) - CORRECT ANSWER ✔✔1. Use a perpetual inventory system
2. Are of two basic types:
job order cost, process cost system
Product cost systems (2) - CORRECT ANSWER ✔✔1. Are used when a series of connected
manufacturing processes or departments produce a large volume of similar products
2. Account for and accumulate product-related costs for a period of time
job order costing - CORRECT ANSWER ✔✔a costing system used in situations where many
different products, jobs, or services are produced each period
