1. Why do managers need special manufacturing records and a separate statement reporting the costs involved in producing goods?
2. How can an inventory be taken if work in process items are in varying stages of completion at the end of the accounting period?
3. Why might management want to separate direct and indirect labor costs?
4. Why should the statement of cost of goods manufactured not be used alone to measure efficiency and control costs?
5. In this chapter, we said that the value of sales supplies and office supplies on hand at period end is considered too small to justify an adjusting entry. If this omission were questioned, (arguing that the accounting records should show everything), what would you say?