Question

For a manufacturing company, direct material costs may be included in: A) direct materials inventory only...

For a manufacturing company, direct material costs may be included in:

A) direct materials inventory only

B) merchandise inventory only

C) both work-in-process inventory and finished goods inventory

D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts

Explain.

I know its D. But can you explain why its D?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Direct material Cost is included in direct material inventory because when direct material is left after direct material requisitioned is included in direct material inventory while which direct material is also left in work in process (unit started but not completed) and direct material also included in finished goods inventory because finished goods inventory is also have direct material

For a manufacturing company, direct material costs may be included in:

So answer is d) direct materials inventory, work-in-process inventory, and finished goods inventory accounts

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory,...
The following information comes from the accounting records for Chelsea, Inc., for May. Direct materials inventory, May 1 $ 17,500 Direct materials inventory, May 31 14,700 Work-in-process inventory, May 1 8,300 Work-in-process inventory, May 31 6,000 Finished goods inventory, May 1 54,100 Finished goods inventory, May 31 71,100 Direct materials purchased during May 83,200 Direct labor costs, May 60,300 Manufacturing overhead, May 80,600 Required: a. Compute the total prime costs for the month of May. b. Compute the total conversion...
since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing...
since manufacturing costs (direct materials, direct labor, and overhead) are incurred in the process of manufacturing units of product, these costs are debited to A.) The direct materials Inventory, Direct Labor, and Manufacturing overhead accounts B.) Expense Accounts C.) The cost of goods sold account. D.) The work in Process Inventory Account
11. Direct Materials cost is debited to:    a. Raw Materials Inventory    b. Manufacturing Overhead     c. Cost...
11. Direct Materials cost is debited to:    a. Raw Materials Inventory    b. Manufacturing Overhead     c. Cost of Goods Sold     d. Direct Materials    e. Work in Process ____12. Beginning Finished Goods Inventory + X – Ending Finished Goods Inventory = Cost of Goods Sold.   What is X?    a. Direct Materials    b. Manufacturing Overhead   c. Cost of Goods Manufactured    d. Beginning Work in Process Inventory ____13. One way to calculate the Predetermined Overhead Rate is: a. estimated MO divided by estimated Direct...
Direct materials inventory, January 1 $ 2,520 Direct materials inventory, December 31 2,088 Work-in-process inventory, January...
Direct materials inventory, January 1 $ 2,520 Direct materials inventory, December 31 2,088 Work-in-process inventory, January 1 5,440 Work-in-process inventory, December 31 6,110 Finished goods inventory, January 1 22,320 Finished goods inventory, December 31 38,770 Cost of goods manufactured during this year 611,650 Total manufacturing costs 612,320 Direct labor 270,400 Manufacturing overhead 225,000 Average selling price per unit 18 Gross margin percentage (as a percentage of sales) 38 % if this is the infomation given how can I find the...
1. Costs that are expensed when incurred are called: A. product costs. B. direct costs. C....
1. Costs that are expensed when incurred are called: A. product costs. B. direct costs. C. inventoriable costs. D. period costs. E. indirect costs 2. The accounting records of Manning Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000. Ehrlich’s product costs total: A. $675,000. B. $1,050,000. C. $895,000. D. $1,270,000. E. None of the answers is correct 3. How should a company that manufactures automobiles classify its...
Logan’s Enterprises reported the following data for May. Beginning balance, Direct Materials Inventory $45,000 Beginning balance,...
Logan’s Enterprises reported the following data for May. Beginning balance, Direct Materials Inventory $45,000 Beginning balance, Work in Process Inventory 52,000 Beginning balance, Finished Goods Inventory 62,000 Ending balance, Direct Materials Inventory 47,000 Purchase of direct materials 92,000 Direct labor 48,000 Manufacturing overhead 42,000 Cost of Goods Manufactured 200,000 Cost of Goods Sold 220,000 Required: How much direct materials were used in production? What were the total manufacturing costs for the month of May? What was the ending balance in...
1.Manufacturing costs are typically classified as Select one: a. direct materials or direct labor b. product...
1.Manufacturing costs are typically classified as Select one: a. direct materials or direct labor b. product costs or period costs c. direct materials, direct labor, or manufacturing overhead d. direct materials, direct labor, or selling and administrative 2. Raw materials inventory, January 1 $ 12,000 Raw materials inventory, December 31 16,000 Work in process, January 1 5,000 Work in process, December 31 8,000 Finished goods, January 1 17,000 Finished goods, December 31 12,000 Raw materials purchases 118,000 Direct labor 165,000...
Remember that manufacturing costs are product costs and that a manufacturer will have three inventory accounts—materials,...
Remember that manufacturing costs are product costs and that a manufacturer will have three inventory accounts—materials, work-in-process, and finished goods. Manufacturing overhead allocated (applied) represents the amount of overhead allocated to jobs. Some companies use only a single Manufacturing Overhead account. What are the three possible ways to dispose of underallocated or overallocated overhead costs at the end of a fiscal year? Briefly comment on the theoretical correctness or incorrectness of each method. Write the word or phrase that best...
Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the...
Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700, while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with...
Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the...
Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT