23. A product cost is a. expensed in the period in which it is manufactured b. shown with current liabilities on the balance sheet c. shown with operating expenses on the income statement d. expensed in the period the product is sold 24. Conversion costs are a. direct materials and direct labor b. direct materials and factory overhead c. factory overhead and direct labor d. direct materials and indirect labor 25. Given the following data: Beginning raw materials inventory Materials purchased Ending raw materials inventory $30,000 65,000 40,000 What is the amount of raw materials used? a. $5,000 b. $55,000 c. $75,000 d. $30,000 26. The following information is taken from the financial records of Gunner Manufacturing: 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 What is the cost of goods manufactured? a. $178,000 b. $132,000 c. $122,000 d. $142,000 27. Managerial accountants could prepare all of the following reports except a. a performance report identifying amounts of scrap b. a control report comparing direct material usage over time c. a sales report targeting monthly sales and potential bonuses d. an annual report for external regulators such as the SEC