(Solved): The depreciation expense associated with a forklift that is used to place finished goods onto the ...

1. The depreciation expense associated with a forklift that is used to place finished goods onto the delivery truck (delivery trucks then deliver merchandise to customers at their homes) is

   1. a sunk cost

   2. a product cost

   3. a period cost.

   4. a mixed cost.

2. The depreciation expense associated with a forklift used to move items from WIP into Finished Goods is

1. A product cost

2. A period cost

3. A sunk cost

4. A mixed cost

3.When Work In Process inventory INCREASES from the beginning of the accounting period to the end, COGM ________ when compared with total manufactuing cost.

1. Decreases

2. stays the same

3. Increases

4. not enough information has been provided to answer.

4.If beginning finished goods inventory is higher than ending finished goods inventory, it has the effect of ______________ COGS when compared to purchases or COGM.

1. Decreasing

2. increasing

5.Period costs will never show up in which of the following?

1. In administrative expenses of the income statement.

2. Below the gross margin line in the income statement.

3. Above the gross margin line in the income statement.

4. In selling expenses of the income statement.

6.Product costs will never appear in which of the following?

1. In a debit.

2. In a credit.

3. In the lines above gross margin in the income statement.

4. In the lines below gross margin in the income statement.