17. The following information is taken from the financial records of Gunner Manufacturing: 11. The income statement for both a merchandiser and a manufacturer would include a. operating expenses b. direct materials c. direct labor incurred d. cost of goods manufactured Cost of materials used Direct labor costs Factory overhead Work in process, beginning Work in process, ending $45,000 48,000 39,000 18,000 28.000 12. Which of the following is an example of direct materials cost for an automobile manufacturer? a. cost of oil lubricants for factory machinery b. cost of wages of assembly worker c. salary of production supervisor d. cost of interior upholstery What is the cost of goods manufactured? a. $178,000 b. $132,000 c. $122.000 d. $142,000 13. Goods that are partially completed by a manufacturer are a. merchandise inventory b. work in process inventory c. finished goods inventory d. materials inventory 18. Which of the following is not a prime cost? a. plant janitor's wages b. direct labor wages c. machine operator wages d. assembly line wages 14. The primary goal of managerial accounting is to provide information to a. investors b. creditors c. management d. external auditors 19. The cost of a manufactured product generally consists of which of the following costs? a direct materials cost and factory overhead cost only b. direct labor cost and factory overhead cost only c. direct labor cost, direct materials cost, and factory overhead cost d. direct materials cost and direct labor cost only 15. Which of the following manufacturing costs is an indirect cost of producing a product? a. oil lubricants used for factory machinery b. commissions for sales personnel c. hourly wages of an assembly worker d. memory chips for a microcomputer manufacturer 20. Cost of goods manufactured is equal to a. total manufacturing costs plus ending materials inventory less beginning materials inventory b. cost of goods sold plus beginning work in process inventory less ending work in process inventory c. total manufacturing costs plus ending work in process inventory less beginning work in process inventory d. total manufacturing costs plus beginning work in process inventory less ending work in process inventory 16. Which of the following costs are conversion costs? a. direct labor cost and factory overhead cost b. direct materials cost and direct labor cost c. factory overhead cost d. direct materials cost and factory overhead cost 21. Finished goods inventory is reported on the a. income statement as a period cost b. balance sheet as a long-term asset c. balance sheet as a current asset d. income statement as revenue 22. A plant manager's salary is a(n) a. direct cost and an indirect cost b. direct cost c. indirect cost d. period cost
