Which of the following statements about manufacturing cost flows is false? a. Direct materials, direct labor, and manufacturing overhead are
Which of the following statements about manufacturing cost flows is false? a. Direct materials, direct labor, and manufacturing overhead are
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:C.
u.
Hext year s ihcome is overstated.
11. Samuel M
end of it:
7. Which of the following statements about manufacturing cost flows is false?
a. Direct materials, direct labor, and manufacturing overhead are entered
in the Work-in-Process Inventory account.
b. The Finished-Goods Inventory account will contain entries that reflect
the cost of goods sold during the period.
The cost of units sold during the period will typically appear on the
income statement.
d. When a company sells goods that cost P54,000 for P60,000, the firm will
enter P6,000 in an account entitled Profit on Sale.
During t
Raw ma
8. Which of the following statements about materials is false?
a. Acquisitions of materials are normally charged to the Purchases
Direct la
Indirect
account.
b. The use of direct materials gives rise to a debit to Work-in-Process
Inventory.
The use of indirect materials gives rise to a debit to Manufacturing
Taxes ar
Taxes ar
C.
Sales sal
Overhead.
Office sa
d. The use of indirect materials gives rise to a credit to Manufacturing
Supplies Inventorv
Utilities
sales
Manuel's
P257
D3.000
a.
6.) P260
0261
269
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