On a manufacturing company's income statement, which of the following is true?1. Direct labor is separately listed as an expense.2. Direct materials is separately listed as an expense.Only statement I is true.Neither statement is true.Only statement II is true.Both statements I and II are true.O O O O

1. Income Statement - Income Statement is the summary of income earned and expense incurred during…

Answered: On a manufacturing company's income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. A manufacturing company reports cost of goods manufactured as an) a. current asset on the balance sheet. b. administrative expense on the income statement. e. component in the caleulation of cost of goods sold on the income statement. d. component of the raw materials inventory on the balance sheet.
A multi- step income statement ___________. A. Seperates cost of goods sold from operating expenses. B. Considers imterest revenue an operating activity. C. Is another name for a simple income statement. D. Combines cost of goods sold and operating expenses.
Which of the following costs would not be included in accounting financial statements? O A. opportunity costs O B. sunk costs O C. historical costs O D. All of the above would be included in accounting financial statements
Which of the following costs is NOT capitalized as inventory? a. Rent on Head Office building b. Costs of delivering finished goods c. Manufacturing overhead cost d. Factory amortization
Which one of the following is NOT correct about manufacturing statement? Select one: a. It includes direct and indirect labor cost. b. It reports Cost of Goods Manufactured and Cost of Goods Sold. c. It shows the financial position of a company on a specific date. d. It includes the adjustments for the opening and closing stocks of WIP and Finished Goods
3. Costs of a product that are regarded as an asset for financial reporting under GAAP are called inventoriable costs. O mixed costs. O direct costs. O overhead costs.
A. Manufacturing margin? b. Contribution margin? C. Operating income for PhiladelPho's company ?
A product cost is Oa. shown with current liabilities on the balance sheet Ob. shown with operating expenses on the income statement c. expensed in the period in which it is manufactured Od. expensed in the period the product is sold
Manufacturing overhead is not : A manufacturing cost . An indirect cost . A period cost. о A product cost.
The principal difference between the income statements of a merchandising company's and a manufacturing company is the O revenue section. O cost of goods sold section. O operating income section. O operating expense section.
Period costs include: a. current liabilities on the balance sheet b. operating costs that are shown on the income statement in the period in which they are incurred c. current assets on the balance sheet d. operating costs that are shown on the income statement when the products are sold
When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overheadgenerally done? A. Before the period startsB. NeverC. During the periodD. At the end of the period...

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