Multiple choice

Please use the following for questions 1 & 2.

Acme Manufacturing had the following transactions:

A. Purchased $60,000 of raw materials.

B. Transferred $40,000 of raw materials into the production process.

C. Incurred $50,000 of direct labor costs.

D. Applied $20,000 of factory overhead.

E. Transferred $100,000 to finished goods.

F. Sold goods costing $80,000 for $140,000.

G. Incurred $10,000 of selling costs.

H. Incurred $5,000 of administrative costs.

1. Net income for Acme Manufacturing was:

A. $140,000

B. $60,000

C. $45,000

D. $50,000

2. TOTAL inventory costs remaining are:

A. $20,000

B. $10,000

C. $50,000

D. $60,000

3.. The cost of a manufactured product generally consists of which of the following costs?

A. direct materials cost and factory overhead costs

B. direct labor cost and factory overhead costs

C. direct labor cost, direct materials cost, and factory overhead cost

D. direct materials cost and direct labor cost

4. When compared to financial accounting, managerial accounting is less rules based and more subjective.

A. True

B. False