acct 2302 practice problems final

Question 1

This is a cost that goes straight to the income statement and is not part of the inventory

a. Direct Materials
b. Direct Labor
c. Manufacturing Overhead
d. Selling, General, and Administrative

Answer 1

d. Selling, General, and Administrative

Question 2

Completed and transferred the formula

Answer 2

BOM + Started – Completed = EOM

Question 3

EU Production formula

Answer 3

EU Production = Completed + Ending WIP

Question 4

Manufacturing Cycle Efficiency (MCE)

Answer 4

Value-added time / Throughput time

Question 5

A factory​ janitor’s wages would be classified as​ ________ when determining the cost of a manufactured product.

Period Cost
Direct Cost
Indirect Cost
None of the above

Answer 5

Indirect Cost

Question 6

When units sold is greater than units produced, this costing method has a higher ending NOI

Variable Costing
Absorption Costing
They will be the same

Answer 6

Variable Costing