QUESTION 4 Indicate whether each of the following costs incurred by a manufacture would be considered an (Inventoriable) Product Cost or a Period Cost. If the cost is identified as a Product costs, indicate whether it would be considered Direct Material, Direct Labor, or Manufacutring Overhead (MOH). А. Product - MOH The cost to deliver finished product to customers В. Period The insurance costs for the factory building С. Product - Direct Materials The wages of the assembly workers D. Product - Direct Labor

QUESTION 4 Indicate whether each of the following costs incurred by a manufacture would be considered an (Inventoriable) Product Cost or a Period Cost. If the cost is identified as a Product costs, indicate whether it would be considered Direct Material, Direct Labor, or Manufacutring Overhead (MOH). А. Product - MOH The cost to deliver finished product to customers В. Period The insurance costs for the factory building С. Product - Direct Materials The wages of the assembly workers D. Product - Direct Labor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following correctly describes the term cost driver? a.The primary factor which is correlated with the amount of cost incurred to produce a product b.The total material, labor, and overhead cost of a completed job c.The inflation rate which causes costs to rise d.The initial purchase price of direct materials
Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expens than the home consoles. The company only recently began producing the home model. Since the introduction of the new product. profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products particularly because sales of the new product have been increasing Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,366,000 based on production of 340.000 handheld consoles and 89,000 home consoles. Direct labor and direct materials costs were as follows. Direct labor Materials Handheld $1,294, 500 790,000 Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead…
Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.
The cost of a manufactured product (product cost) generally consists of which of the following? Group of answer choices selling and administrative expenses direct material, direct labor, applied factory overhead direct labor and applied factory overhead direct material and direct labor
1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one: a.dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base b.dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c.dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver d.dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
Costs that are incurred as part of the manufacturing process, but are not clearly traceable to the specific unit of product or batches of product, are called a. Period costs. d. Operating expenses. b. Factory overhead. e. Fixed costs. c. Variable costs.
Please organize the list (picture) into the corresponding categories: Product Cost: Direct Materials Product Cost: Direct Labor Product Cost: Manufacturing Overhead Period Cost: Selling Expense Period Cost: Administrative Expense
Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $334,400. During that time, the company produced 14,900 units of the M-008 and 2,400 units of the M-123. The direct costs of production were as follows. М-008 М-123 Total Direct materials $119,200 $ 96,000 48,000 $215,200 Direct labor 119,200 167,200 Management…
Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Rent on factory building.
Insurance expense incurred on a factory building would be treated as a a.period cost b.selling cost c.direct cost d.product cost
Factory or Manufacturing Overhead costs would include all of the following except: A) Indirect materials B) Direct materials C) Depreciation expense D) Insurance expense
Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period? OA) Goods available for sale B) Raw materials purchased OC) Work in Process inventory D) Direct materials used