Manufacturing Costs Classification and Examples: Direct

Chapter 19 MCQ review Manufacturing costs that cannot be classified as either direct materials or direct labor are known as a. period costs. b. nonmanufacturing costs. c. selling and administrative expenses. d. manufacturing overhead. Which one of the following is an example of a period cost? a.A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer b.Workers' compensation insurance on factory workers' wages allocated to the factory c.A box cost associated with computers d.A manager's salary for work that is done in the corporate head office Which one of the following represents a period cost? a.The VP of Sales' salary and benefits b.Overhead allocated to the manufacturing operations c.Labor costs associated with quality control d.Fringe benefits associated with factory workers A manufacturing company calculates cost of goods sold as follows: a.Beginning FG inventory + cost of goods purchased-ending FG inventory. b. Ending FG inventory-cost of goods manufactured + beginning FG inventory. c. Beginning FG inventory-cost of goods manufactured-ending FG inventory. d.Beginning FG inventory + cost of goods manufactured-ending FG inventory. The subtotal, "Cost of goods manufactured" appears on a. a merchandising company's income statement. b. a manufacturing company's income statement. c.both a manufacturing and a merchandising company's income statement. d.neither a merchandising nor a manufacturing company's income statement. Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured? a. $70,000 b. $10,000 c. $60,000 d. $40,000 The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the a. cost of goods manufactured. b. total manufacturing overhead. c. total manufacturing costs. d.total cost of work in process.