At the end of the accounting period, the balance in the Raw Materials inventory account reflects the cost of materials:
A. purchased during the period.
B. assigned to manufacturing overhead.
C. on hand and available for use.
D. issued to production.
Answer: C
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The inventory system that uses the merchandise inventory account as an active account is called
a. perpetual. b. LIFO. c. FIFO. d. periodic.
A company has 6,000 shares of common stock outstanding and the total common stockholders' equity is $1,500,000 . The book value per share of common stock is
a. $.004. b. $2.50. c. $4.00. d. $250.00.
Harris Company reported the following results from operations for 2014: Extraordinary loss (pretax) ........................... $22,000 Net income (after tax) ................................ $75,200 Income tax rate ....................................... 40% Income before extraordinary items was
a. $97,200 b. $83,280 c. $87,200 d. $88,400
Ashland Inc is a manufacturer of small appliances. For which of the following activities would Ashland be more likely to use a static budget than a flexible budget?
A) For planning the amount of direct materials that will need to be purchased in the upcoming year. B) For the evaluation of whether or not actual direct labor costs were reasonably close to budgeted direct labor costs. C) For the comparing the actual manufacturing overhead costs with the budgeted manufacturing overhead costs during the year. D) For the evaluation of whether or not employees made the most efficient use of their time.