Answer the following statements true (T) or false (F)
1. Direct labor costs are accumulated in the Manufacturing Overhead account. Process costing is used.
2. The journal entry to record indirect labor costs incurred, but not paid, includes a debit to Manufacturing Overhead and a credit to Wages Payable. Process costing is used.
3. Under a process costing system, direct labor costs are assigned to the Work-in-Process Inventory account of the department for which they are incurred.
4. Under process costing, depreciation on plant machinery is debited to the respective department's Work-in-Process Inventory.
5. When finished products are sold, Sales Revenue is debited, and Cost of Goods Sold is credited. Process costing and the perpetual inventory system are used.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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At the end of 2016, Clock Products, Inc determined that one of its patents was worthless. The patent had a cost of $300,000 . The patent had been amortized for 5 years of its estimated 15-year legal life. Which of the following statements is correct?
a. Clock Products must continue to amortize the patent over its remaining 10 years of life. b. The patent must be reduced to 5/15, or 33.3% of its original cost and amortized over the remaining 10 years. c. The remaining unamortized cost must be removed from the accounting records and treated as a loss on the income statement. d. Clock Products must correct its financial statements for the past five years, so that the entire cost is allocated to that five-year period.
Rick Lee is a milk deliveryman in the U.S. He delivers milk, eggs, cottage cheese and orange juice to 200 regular customers weekly. Imagine that after he made a predawn delivery, a dog spilled the milk and broke the eggs. When the customer calls to complain, Lee should:
A. refer the customer to another dairy firm. B. call local animal control. C. blame the dog. D. ignore the complaint. E. replace the food quickly.
A major advantage of advertising is that _____
a. costs per viewer, reader, or listener are low b. media costs are free c. advertising has higher credibility than public relations d. immediate feedback is provided
You are in a staff meeting when your boss mentions an idea he’s been thinking about for a while. You love his idea and feel it would benefit the organization. So you are the first staff member speak up and agree with the boss’s strategy. You are demonstrating which of Carsten and colleagues’ perspective on followers?
A. followers get the job done B. followers support the leader C. followers challenge leaders D. followers band together