Direct labor and direct materials are   a. period costs and expensed when the goods are sold   b. product costs and expensed when incurred   c. period costs and expensed when incurred   d. product costs and expensed when the goods are sold

Q: Which of the following costing systems assigns actual costs of materials to inventory? a.normal…

A: A costing system is designed by a company to monitor the costs incurred by the company.

Q: Direct material cost refer to: cost of the raw materials used to produce goods and directly become…

A: A direct material cost is a form of direct cost which is included in the calculation of product…

Q: Carriage inward on purchase of raw material is classified as?   a. Selling overheads   b. Direct…

A: Carriage inward cost on purchase of direct material is added to the cost of direct material.

Q: Product costs are expensed Group of answer choices When the product unit cost is calculated. When…

A: Solution: Product costs is capitalized in inventory when same is produced. However when products are…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Factory…

A: Product costs: It is the cost that is associated directly with production of goods and comprises of…

Q: Conversion costs are: A. direct material, direct labor, and manufacturing overhead. B. direct…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: This includes all manufacturing costs that cannot be classified as direct materials or direct labor.…

A: From all of the above, the Period cost is not directly concerned with the production. The prime cost…

Q: Which of the following cost is included in cost of goods sold? customer service cost manufacturing…

A: In layman's language, the Cost of goods sold is nothing but the total cost incurred to produce a…

Q: When the purchase of materials is journalized in a process cost accounting system, the materials…

A: Journalization refers to the process of recording each and every business transaction having…

Q: What is the inventoriable product costs Select one: O a. Are the direct and indirect costs of…

A: inventoriable product costs consists of costs incurred in producing the goods. all the direct and…

Q: Direct labor is included in the computation for the cost classified as     Group of answer choices…

A: Prime cost = Direct material + Direct labor Product cost = Direct material + Direct labor +…

Q: The cost of goods manufactured includes: Applied direct or indirect materials, but not actual…

A: Calculating a corporation's entire manufacturing expenses throughout a particular period of time…

Q: Refer to the T-account below: Debit Balance (4) (6) (9) Balance Work In Process 30,000 (12) 90,000…

A: Work in process ledger represents direct material, direct labor and manufacturing overheads. All the…

Q: Bounty Hunter Corporation has the following transaction for the month of February and uses Job order…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The two categories of coat comprising conversion cost are A. Factory overhead, direct materials B.…

A: Introduction: Conversion cost: In the process of conversion of raw materials stage to finished goods…

Q: T, F. Prime cost consists of Direct Materials and Factory Overhead.

A: Prime cost is a combination of direct attributes i.e primarily incurred for the product.

Q: Conversion cost is: *   a. Combination of direct materials and direct labor       b. Combination of…

A: The costs incurred on production includes direct material costs, direct labor cost and manufacturing…

Q: Differences between a job order cost system and a process cost system include all of the following…

A: Job Order Cost System and Process Cost System are two different costing methods used in managerial…

Q: Use of direct and indirect materials in production requires a credit to

A: Raw material: Raw material is the material used in production which can be converted to final…

Q: When will cost of goods sold will equal the cost of goods manufactured?   when work-in-process…

A: Particulars Amount Ending finished goods inventory xxxx Add: Cost of goods sold xxxx…

Q: Conversion costs consist of O A. direct labor B. manufacturing overhead C. A only D. Both a and b O…

A: Conversion costs include all those costs which are required to convert direct materials into…

Q: are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost…

A: The costs which are not directly related to production process are called Period costs.These are not…

Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…

A: Selling  expenses means the expense incurred while selling the goods like sale men commission , sale…

Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD.…

A: Conversion costs seem to be the expenses of converting raw resources into finished goods. In cost…

Q: Indirect materials and indirect labour are classified as: O a. manufacturing overhead and product…

A: Costs that are not traced to the product directly are known as indirect costs. These costs are…

Q: When materials and supplies are used in a product that will be sold to customers, the usage of the…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: The ABC system improves the allocation of​ ________.   A. direct materials   B. sales commissions…

A: ABC system: Activity based cost system is widely used in the manufacturing industry. Under this…

Q: When products and their costs are moved from one process to the next process, these costs are…

A: Process costing is a method of costing used to ascertain the cost of a product at each stage or…

Q: The following data from the just completed year are taken from the accounting records of Mason…

A: COGS comprises expenditures directly related to the manufacturing process, such as raw materials,…

Q: Conversion costs are A. direct materials plus manufacturing overhead. B. direct labor plus…

A: Conversion cost are those cost which are incurred to convert raw material into finished goods.

Q: a. manufacturing overhead costs O b. indirect labour costs O C. direct labour costs O d. direct…

A: The costs incurred for the production are classified as direct and indirect costs. The costs are…

Q: The controlling account for the job cost sheets is a.Finished Goods b.Materials c.Work in Process…

A: A job cost sheet is indeed a list of a task's real expenses.  The accounting department creates the…

Q: Research and development costs are classified as: O a. Inventoriable costs. O b. O c. O d. Product…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: If selling and administrative expenses are allocated to different products, they should be reported…

A: Cost refers to the amount spent to acquire a product and item, or the cost used to produce a product…

Q: a. Prepare the journal entries to record all possible events in above situation. b. Compute the…

A: a) Journal Entries Date Particulars Debit Credit   Work  in Process 120,000     Raw Materials…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.