Quiz 3 Costing Systems
ACCT 1162 5483
INTRO TO MANAGERIAL ACCOUNTING
1) The financial statements are crucial for financing, investing, and normal operation for all companies
2) Available for sale equals to ending inventories plus purchases during the period.
3) Assume that ending balance of inventory is $100 for the first year of operation and the beginning balance inventory is $40, the average inventory for the first year operation is ($100+$40) / 2
4) Weighted average costing method and first in first out costing method give the same results (assigning costs to finished goods and transferred out)
If there are no beginning inventories
5) Merchandise ending inventories are part of cost of goods sold schedule and balance sheet statement.
6) Assume that ending balance of inventory is $100 for the first year of operation, the average inventory for the first year of operation is $100
7) For calculating equivalent unit, weighted average costing method
Considers costs added during period
8) Total costs less prime costs equals to overhead costs.
9) An example of Job order costing producing
10) Available for sale equals to begriming inventories plus purchases during the period.
11) Job order costing is adequate when the units produced are
12) An example of process costing is producing
Similar small pens
13) Available for sale equals to ending inventories plus cost of goods sold.
14) For calculating equivalent units, the weighted average costing method is the same as the first in first out (FIFO) method.
15) Production costs include material, labor and overhead costs.
16) Merchandise ending inventories are only part of cost of goods sold schedule
17) Working capital = current liabilities - current assets
18) For calculating equivalent units, weighted average costing method
Considers cost added during actual period