HELPPPPPPPPPPP BY 11:OO PM GUYS 5. Ferguson Company recognized $400 of estimated
ID: 2454731 • Letter: H
Question
HELPPPPPPPPPPP BY 11:OO PM GUYS
5. Ferguson Company recognized $400 of estimated manufacturing overhead costs at the end of the month. How does this transaction affect the financial statements?
6. Travis Company had no beginning work in process inventory. Its total manufacturing costs for the year were $427,000. If cost of goods manufactured was $332,000 and cost of goods sold was $250,000, the amount of ending work in process inventory would have been:
7.
Product costs are expensed as cost of goods sold:
at the start of production.
when the related products are sold.
when production is complete.
when the related revenue is collected.
8.
Select the incorrect statement regarding service companies.
Service companies do not maintain a finished goods account.
Service companies may have raw material costs.
Service companies accumulate their service costs in a work in process account similar to manufacturers.
Understanding the cost of providing a service is just as important as knowing the cost of making a product.
9. Orlando Company placed $142 of raw materials into production. How would this transaction affect the company's financial statements?
10.
A credit to the raw materials account represents:
raw materials available for use.
none of these.
raw materials added to production.
raw materials purchased.
11. The Winchester Company estimates for the 2014 accounting period that its overhead costs will amount to $595,000 and that it will work 85,000 direct labor hours. If actual overhead costs for the year amounted to $599,000 and actual labor hours amounted to 87,000, then overhead would be:
12.
All of the following are reasons to assign estimated overhead to inventory except:
management reduces the distortions that would come from actual monthly overhead.
managers need to use estimated overhead to control earnings.
managers need to know if production costs are higher than expected as soon as possible.
managers need cost information as soon as possible after production.
Explanation / Answer
5) Assets will increase by $400 and liablities will increase by $400
6)Beginning WIP + Manufacturing costs - Cost of goods manufactured
= Ending work in process
=0+427000-332000=$95,000
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