Acc 202 Study Guide Questions And Correct Answers

Cost accounting systems are used _______________. A. to accumulate product cost information B. to accumulate and assign period costs to products C. by stockholders for decision-making purposes D. by manufacturing companies, not service companies (Chapter 17) {Ans: to accumulate product cost information}Fire Cat, Inc. selected cost data for the year are shown below: Cost of Goods Manufactured $145,500 Work-in-Process Inventory, Jan. 1 19,500 Work-in-Process Inventory, Dec. 31 22,000 Direct Materials Used 18,600 What is the total of manufacturing costs incurred by Fire Cat, Inc. during the year? (Chapter 16) {Ans: $148,000}Manufacturing overhead is also referred to as __________> A. period costs B. indirect manufacturing costs C. prime costs D. direct manufacturing (Chapter 16) {Ans: indirect manufacturing costs}Goods that have been started in the manufacturing process but are not yet complete are included in the ____________. A. Finished Goods Inventory Account B. Raw Materials Inventory Account C. Cost of Goods Sold Account D. Work-in-Process Inventory Account (Chapter 16) {Ans: Work-in-Process Inventory Account}Neptune Accounting Services expects its accountants to work for 24,000 direct labor hours per year. The company's estimated total indirect costs are $225,000. The direct labor rate is $70 per hour. The company uses direct labor