1.3 Separation between direct and indirect costs. Sort the costs by matching these in terms:1.Direct materialsA. Salaries of artists2.Direct workB. Salaries of material warehouse workers3. Indirect materialsC. Paper4. Indirect workD. Depreciation of production equipment5.Other industrial costsE. Salary of factory manager F. Property taxes at the factory G. Glue for envelopes

📌 Product CostsProduct costs, also known as inventoriable costs, are those costs that are directly…

Answered: 1.3 Separation between direct and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following is a part of Prime Cost? a. Direct Labour b. Indirect Wages c. Rent of Factory d. Depreciation on Plant
Use the information to prepare a schedule of cost of goods manufactured and an income statement. Assume no indirect materials are used and all amounts are shown in millions.
A typical indirect labor cost for a manufacturer is: a. factory insurance b. sales office salaries c. sales commissions d. materials handling
Which one of the following is not a production overhead cost? Production line worker’s salary Machine running cost Machine maintenance cost Cost of printing bags with company logo
Which of the following is the correct flow of manufacturing costs? Oa. work in process, finished goods, raw materials, cost of goods sold Ob. raw materials, finished goods, cost of goods sold, work in process Oc. raw materials, work in process, finished goods, cost of goods sold Od. cost of goods sold, raw materials, work in process, finished goods
Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Rent on factory building.
Which one of the following represents a period cost? 1) The VP of Sales' salary and benefits 2) Overhead allocated to the manufacturing operations 3) Labor costs associated with quality control 4) Fringe benefits associated with factory workers
Under variable costing, which of the following costs would not be included in finished goods inventory? a. electricity used by factory machinery b. steel costs for a machine tool manufacturer c. salary of factory supervisor d. wages of machine operator
1 For each of the following costs, identify the cost behavior as variable, mixed, or fixed: 1. Wages of assembly line workers 2. President's salary. 3. Plant utilities, 4. Sales force commissions 5. Shipping costs 6. Factory rent. 7. Research and development expenses 8. Property taxes 9. Advertising. 10. Supplies used in production
Which of the following is a period cost? a. Property taxes on the production facilities. b. The production supervisor's salary. c. Costs to ship the product to the customer. d. Depreciation of the factory equipment.

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SEE MORE TEXTBOOKS

1.Direct materials	A. Salaries of artists
2.Direct work	B. Salaries of material warehouse workers
3. Indirect materials	C. Paper
4. Indirect work	D. Depreciation of production equipment
5.Other industrial costs	E. Salary of factory manager
	F. Property taxes at the factory
	G. Glue for envelopes