Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect. To identify: The impact on financial statement if period cost assigned as product cost.

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Answer 1

Question

Chapter 1, Problem 4.3GAP

To determine

Concept introduction:

Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect.

To identify:

The impact on financial statement if period cost assigned as product cost.

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Colin Industries has fixed costs of $654,800. The selling price per unit is $175, and the variable cost per unit is $95. How many units must the company sell in order to earn a profit of $245,000?

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Answer 2

Question

Chapter 1, Problem 4.3GAP

To determine

Concept introduction:

Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect.

To identify:

The impact on financial statement if period cost assigned as product cost.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 4.3GAP

To determine

Concept introduction:

Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect.

To identify:

The impact on financial statement if period cost assigned as product cost.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 4.3GAP

To determine

Concept introduction:

Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect.

To identify:

The impact on financial statement if period cost assigned as product cost.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 1, Problem 4.3GAP

To determine

Concept introduction:

Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect.

To identify:

The impact on financial statement if period cost assigned as product cost.

Answer 6

Chapter 1, Problem 4.3GAP

To determine

Concept introduction:

Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect.

To identify:

The impact on financial statement if period cost assigned as product cost.

Answer 7

Chapter 1, Problem 4.3GAP

To determine

Concept introduction:

Period Cost cannot be assigned to the products or to the cost of inventory. The period cost is just related to the selling of product or it’s related to general administration. So the assignment of period cost as product cost is totally incorrect.

To identify:

The impact on financial statement if period cost assigned as product cost.

Answer 8

Expert Solution & Answer

Answer 9

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Answer 10

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Answer 11

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Solution Summary: The author explains that period cost cannot be assigned to the products or the cost of inventory, so the assignment as product cost is totally incorrect.

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