what of the costs is an example of a cost that remains the same in total as the number of units produced changes a. salary of a factory supervisor b. direct materials c. direct labor d. units-of-production depreciation on factory equipment

what of the costs is an example of a cost that remains the same in total as the number of units produced changes a. salary of a factory supervisor b. direct materials c. direct labor d. units-of-production depreciation on factory equipment

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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Conversion costs include all of the following except:A. wages of production workersB. depreciation on factory equipmentC. factory utilitiesD. direct materials purchased
For manufacturing firms, inventoriable costs include ________. a. plant supervisor salaries. b. depreciation motor vehicles – sales staff. c. advertising costs. d. distribution costs.
An example of a period cost isa. the salary of a production supervisor.b. the raw materials used in production.c. the property taxes on a factory building.d. advertising and promotion expenditures.e. none of the above.
Select and “X” in the column that corresponds to the cost classification for each of the following scenarios. Some items may fit in more than one column.
Required: Classify the following costs as period or traceable costs. Depreciation on office building Insurance expense for factory building Product liability insurance premium Transportation charges for raw materials Factory repairs and maintenance Rent for inventory warehouse Cost of raw materials Factory wages Salary to chief executive officer Depreciation on factory Bonus to factory workers Salary to marketing staff Administrative expenses Bad debt expense Advertising expense Research and development Warranty expense Electricity for plant
Classify the following items as Direct materials, Selling and administrative expense, Factory overhead, or Direct labor. a. Rent expense on factory building b. Sales supplies used c. Factory supplies used d. Indirect materials used e. Wages of assembly line personnel f. Cost of primary material used to make product g. Depreciation on office equipment h. Rent on office facilities i. Insurance expired on factory equipment j. Utilities incurred in the office k. Advertising expense
How would sales salaries be classified for a manufacturing company? Group of answer choices product cost - administrative overhead product cost - factory overhead period cost - administrative expense period cost - selling expense
Classifying Costs The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product. c. Factory operating supplies d. Depreciation of factory equipment e. Hourly wages of warehouse laborers f. Wages of company controller’s secretary g. Maintenance and repair costs for factory equipment h. Paper used by commercial printer i. Entertainment expenses for sales representatives j. Protective glasses for factory machine operators k. Sales commissions l. Cost of hogs for meat processor m. Cost of…
Which of the following represents the cost of jobs completed but not yet sold? O a. Raw Materials Inventory O b. Cost of Goods Sold O c. Work in Process Inventory O d. Finished Goods Inventory O e. None of the given answer is correct
Statement 1: Manufacturing overhead is an indirect cost with respect to units of product. Statement 2: Depreciation on office equipment would be included in the cost of goods manufactured. Statement 3: Rent on factory building used in the production process would be classified as a period cost and as a fixed cost. Statement 4: The amount that a manufacturing company could earn by renting out unused portion of its warehouse is an example of an opportunity cost. Statement 5: Internal failure costs result from identification of defects during the appraisal process such as scrap, rejected products, rework and downtime. a. All statements are true b. Statements 1, 3 and 5 c.Statements 1, 2 and 4 are true are true d. Statements 1, 4 and 5 are true e.Statements 2, 4 and 5 are true f. Statements 2, 3 and 4 are true
For each of the following costs, identify whether it is a Fixed, Variable or Both: Cost Wages of assembly-line workers Depreciation-office equipment Glue and fasteners Delivery costs Raw materials handling costs Salary of marketing manager Production run setup costs Plant utilities Electricity cost of manufacturing plant Research and development expenses Type
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