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(WIP) ACC 350 Exam 1 Study Material

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Pg. 14 Sarah Allison

Pg. 14 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material g. Add reduction in FG h. (f+g) → = COGS i. NOTE: Do ​NOT include ​SG&A (non-production) costs anywhere in the schedule Blackboard Problems

Ptt e. chs . Review 1132 Problems Ch. 2 Review Problems TRUE / FALSE QUESTIONS 1. Product costs become expenses in the period they are purchased. 2. Cost of goods sold does not include the costs of selling merchandise. 3. Factory heating and air conditioning should be considered a product cost in a manufacturing operation. 4. Depreciation of office equipment is a manufacturing overhead cost at Dell Computer, a large manufacturer of personal computers. 5. Overtime premium costs should theoretically be considered part of direct labor cost. 6. Conversion costs equal direct materials and manufacturing overhead costs. 7. Non-manufacturing costs include selling and administrative costs, which are not used to produce products. 8. Tracing costs is generally considered a more accurate method of cost assignment than allocating costs. CONCEPTUAL MULTIPLE CHOICE QUESTIONS 9. Which of the following should be considered part of a manufacturing company's direct labor cost? A) Factory supervisor's salary B) Receiving forklift operator's hourly wages C) Employer-paid health insurance on factory assemblers' wages D) Cost of idle time E) None of the above 10. Wages paid to supervisors in the factory are typically classified as: A) Direct manufacturing labor costs B) Manufacturing overhead costs C) Prime costs D) Period costs 11. Prime costs are the same as: A) Manufacturing overhead costs. B) Indirect labor costs. C) Total manufacturing costs. D) Direct labor and direct materials used. E) Direct labor and direct materials purchased.