Part 2. Classify the following as either manufacturing (M), selling (S), or administrative (A).1. Factory Supplies2. Advertising3. Rent on factory building4. Freight-Out5. President's Salary6. Cost of machine breakdown7. Legal Expenses8. Samples9. Bad debts10. Travel expenses of salesman

Cost of goods produced: It is the cost incurred by the company in producing the goods. It includes…

Part 2. Classify the following as either manufacturing (M), selling (S), or administrative (A). 1. Factory Supplies 2. Advertising 3. Rent on factory buikding 4. Freight-Out 5. President's Salary 6. Cost of machine breakdown 7. Legal Expenses 8. Samples 9. Bad debts 10. Travel expenses of salesman

Part 2. Classify the following as either manufacturing (M), selling (S), or administrative (A). 1. Factory Supplies 2. Advertising 3. Rent on factory buikding 4. Freight-Out 5. President's Salary 6. Cost of machine breakdown 7. Legal Expenses 8. Samples 9. Bad debts 10. Travel expenses of salesman

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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Concept explainers

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.

Question

Part 2. Classify the following as either manufacturing (M), selling (S), or administrative (A).
1. Factory Supplies
2. Advertising
3. Rent on factory building
4. Freight-Out
5. President's Salary
6. Cost of machine breakdown
7. Legal Expenses
8. Samples
9. Bad debts
10. Travel expenses of salesman

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Tennair Corporation manufactures cooling system components. The company has gathered the following information about two of its customers: Evans Equipment and Rogers Refrigeration. Evans Equipment Sales revenue Rogers Refrigeration $ 160,000 61,000 Cost of goods sold General selling costs $ 229,000 102,000 37,000 23,800 28,500 General administrative costs 17,850 Cost-driver data used by the firm and traceable to Evans and Rogers are: Customer Activity Sales activity Order taking Special handling Special shipping Customer Activity Sales activity Order taking Special handling Special shipping Cost Driver Sales visits Sales orders Units handled Shipments Evans Equipment 12 visits 31 orders 460 units. 33 shipments Pool Rate $ 970 278 44 460 Rogers Refrigeration 9 visits 36 orders 410 units 44 shipments Required: A. Perform a customer profitability analysis for Tennair. Compute the gross margin and operating income on transactions related to Evans Equipment and Rogers Refrigeration.
in a merchandising business gross profit is equal to the sales revenue minus (a) the sum of cost of goods sold and sales commissions (b) cost of goods sold (c) the sum of cost of goods sold and operating expenses (d) the sum of cost of goods sold, operating expenses and prepaid expenses
5
Income from operations for a merchandising company is sales less 1.operating expenses. 2.operating expenses and cost of goods sold. 3.cost of goods sold. 4.non-operating items and cost of goods sold.
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