Describe the flow of product costs for a manufacturer.
What will be an ideal response?
The flow of product costs for a manufacturer begins with the purchase of raw materials. The
manufacturer then uses direct labor and manufacturing overhead to convert these materials into Work-in-
Process Inventory. When the manufacturing process is complete, the costs are transferred to Finished
Goods Inventory. The cost of the finished goods that the manufacturer sells becomes its Cost of Goods
Sold on the income statement.
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Jill, a native of New Orleans, was living in Berlin and working for a U.S. news magazine. Jill would best be termed a(n)
A. countertrader. B. franchisor. C. expatriate. D. outsourcer. E. refugee.
If you were asked to conduct a SWOT analysis for Nike, you would not evaluate which of these market opportunities?
A. demographic trends that favor increased repeat purchases and/or higher volume purchases of the company's product. B. acquiring rival firms or companies with attractive technological expertise or capabilities. C. growing buyer preferences for substitutes for the industry's product. D. serving additional customer groups or market segments. E. expanding into new geographic markets.
Corel Sales sold its old office furniture for $6,500. The original cost was $15,000, and at the time of sale, accumulated depreciation was $14,000. What is the effect of this transaction?
A) gain of $6,500 B) gain of $5,500 C) loss of $5,500 D) loss of $6,500
The ________ depreciation method allocates equal amounts of an asset's cost to depreciation during its useful life.
Fill in the blank(s) with the appropriate word(s).