QUESTION 11

2. Which of the following costs are capitalized for self-constructed assets?
4. a. Labor andoverheadonly
5. b. Materials andlabor only
6. c. Materials and overhead only
7. d. Materials,labor andoverhead

QUESTION 12

1. Which of the following is a period cost?
2. a. Labor costs.
3. b. Freight in.
4. c. Production costs.
5. d .Selling costs.

QUESTION 13

1. Morgan Manufacturing Company has the following account balances at year end:
2. Officesupplies$4,000
3. Rawmaterials27,000
4. Work-in-process59,000
5. Finishedgoods72,000
6. Prepaidinsurance6,000
8. What amount should Morgan report as inventories in its balance sheet?
9. a.$72,000
10. b.$76,000
11. c.$158,000
12. d.$162,000

QUESTION 14

1. Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 1,200 units that cost $12 each. During the month, the company made two purchases: 500 units at $13 each and 2,000 units at $13.50 each. Checkers also sold 2,150 units during the month. Using the FIFO method, what is the ending inventory?
2. a.$20,073
3. b.$18,600
4. c.$20,925
5. d.$18,950