4. Merchandising Operations

In a job order costing system, during production, to what account are the costs of direct materials, direct labor, and applied overhead assigned?

Which of the following statements best describes the purpose of a schedule of cost of goods manufactured in a manufacturing company?

Which inventory system provides a continuous record of inventory and cost of goods sold, updating these accounts after each purchase or sale?

The amount of money paid for raw materials and products sold is called:

Which inventory accounting method continuously updates the cost of goods sold and inventory balances with each purchase and sale transaction?

Under the periodic inventory system, cost of goods sold (COGS) is computed using which of the following equations?

Which of the following costs is NOT recorded as part of the cost of machinery and equipment?

Which of the following inventory systems typically includes a direct materials inventory account?

Flash Company produces lamps. Which of the following is NOT considered a direct cost in the production of lamps?

Which of the following best determines the difference between a product cost and a period cost in financial accounting?

As the level of activity moves outside of the relevant range, fixed costs:

Which of the following statements best describes how the cost of goods sold (COGS) is determined under the perpetual inventory system compared to the periodic inventory system?

A company uses the perpetual inventory system. At the end of the period, the following information is available: Beginning Inventory = \$5,000\(, Purchases = \)12,000\(, Ending Inventory = \)4,000$. What is the Cost of Goods Sold (COGS) for the period?

Which of the following statements best describes how the cost of goods sold (COGS) is determined under the perpetual inventory system compared to the periodic inventory system?

Which of the following is typically the largest component of inventory costs for a merchandising company?