Answer True (T) or False: 1.The James Company has incurred the following costs of production: Direct Materials
Question:
Answer True (T) or False:
1.The James Company has incurred the following costs of production: |
2.Product costs are offset against revenue in the period in which the related products are manufactured, rather than the period in which the products are sold. |
3.Metalworks Incorporated purchased $54,500 worth of direct materials to be used in Job #222. During the accounting period, Job #222 used $45,600 of direct materials. The amount of direct materials that would be shown in Job #222 Job Cost Sheet at the end of the accounting period should be $54,500, since this is the amount of direct materials the company had purchased for this particular job. |
4.A debit balance in the manufacturing overhead account at month end indicates overhead applied to jobs was greater than the actual overhead costs. |
5.The number of equivalent units of production during a period may be greater than, equal to, or smaller than the actual number of units completed and transferred to the finished goods warehouse. |
6.Completing 3,000 units which were each 75% complete at the beginning of the period represents 2,250 equivalent units of work during the current period. |
7.Debiting Work in Process in Department Two and crediting Work in Process in Department One represents costs transferred from Department Two to Department One. |
8.Costs which increase in total amount in direct proportion to an increase in output are called variable costs. |
9.The higher the unit contribution margin, the higher the volume of unit sales required to cover a given amount of fixed costs. |
10.The margin of safety sales volume in dollars times the contribution margin ratio equals operating income. |
Managing in a Global Economy Demystifying International Macroeconomics
ISBN: 978-1285055428
2nd edition
Authors: John E. Marthinsen