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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Indicate whether the accounts below are used in the cost flow for a manufacturer, a service provider, or both. Cost of Services Cost of Goods Sold Factory Overhead Finished Goods Materials Overhead Supplies Wages Payable Work in Process
Determine whether each of the following costs should be classified as product costs or period costs. Depreciation on office equipment. Salary to painting supervisor. Wages paid to production workers. Insurance on office equipment and machinery. Materials purchased.
Number the following in the order of the flow of manufacturing costs for a company: a. Closing under/overapplied factory overhead to cost of goods sold b. Materials purchased c. Factory labor used and factory overhead incurred in production d. Completed jobs moved to finished goods e. Factory overhead applied to jobs according to the predetermined overhead rate f. Materials requisitioned to jobs g. Selling of finished product h. Preparation of financial statements to determine gross profit
1. Property taxes on a manufacturing plant is an element of: a. Conversion cost b. Prime cost c. Period cost d. Fixed cost 2. Factory supplies for manufacturing plant are generally a. Prime cost b. Fixed cost c. Period cost d. Variable cost 3. Wages paid to timekeeper in a factory is a a. Prime cost b. Direct Material c. Conversion cost d. Direct labor
Question Content Area Which of the following would be included in the cost of a product manufactured according to absorption costing? a. sales salaries b. advertising expense c. office supplies costs d. depreciation expense on factory building
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.
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
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
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