Part 1:

A product cost is:

expensed in the period in which it is manufactured

shown with current liabilities on the balance sheet

shown with operating expenses on the income statement

expensed in the period the product is sold

Part 2: What is the purpose of the statement of cost of goods manufactured?

All of these choices are correct.

to determine the amounts transferred to finished goods

to determine the ending materials inventory

to determine the ending work in process inventory

Part 3: Which of the following is not a characteristic of a job order costing system?

It is best suited for industries that manufacture custom goods.

It accumulates cost for each department within the factory.

It uses only one work in process account.

It provides a separate record for the cost of each quantity of product that passes through the factory.