12. WHICH OF THE FOLLOWING COSTS INCURRED BY A PAPER MANUFACTURER…

July 4, 2011

Question:

12. Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs? (Points: 5)
Advertising costs
Raw lumber (direct materials)
Machine operator’s wages (direct labor)
Sales salaries


13. The details concerning the costs incurred on each job order are accumulated in a subsidiary ledger known as the: (Points: 5)
stock ledger
materials ledger
cost ledger
creditors ledger


14. Costs that are used in generating revenues during the current period are often referred to as: (Points: 5)
period costs
conversion costs
factory overhead costs
product costs


15. Which types of inventories does a manufacturing business report on the balance sheet?
(Points: 5)
Finished goods inventory and work in process inventory

Direct materials inventory and work in process inventory
Direct materials inventory, work in process inventory, and finished goods inventory
Direct materials inventory and finished goods inventory


16. When you are billing a customer for a service job all of the charges are reasonable EXCEPT: (Points: 5)
material storage and handling charges
additional charge for the first hour
overtime premium if the worker arrived at the customer’s job after normal working hours due to another job running over the estimated time
none of these are reasonable charges

Answer:


DMC :

12. machine operators wages

DMC :

13. cost ledger

DMC :

14. period costs

DMC :

15. direct materials, finished goods, wip

DMC :

16. premium for running late

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