For product costs to become expenses, The product must be completed O The product must be finished O The product must be sold O None of the above
Q: Which of the following is the best definition of product costs? a. Product costs are those costs…
A: Cost refers to amount or value which has to be incurred in order to purchase or produce a product…
Q: What is the rationale behind treating period costs as current expenses? a. Period costs are…
A: Period cost is the cost which is incurred during an accounting year but not directly related to…
Q: Which of the following is not a product cost? Multiple Cholce O Direct materlals ) Direct labor…
A: Product cost is that which is not included in the direct manufacturing of the goods. Direct…
Q: Product costs are also called: * O Direct costs. Overhead costs. Manufacturing overhead costs O None…
A: Since there are multiple questions, we will solve only first for you. To get the remaining questions…
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: Which of the following is NOT a reason for companies to assign costs to products or services?
A: We know that objective of every business is to attain profitability Now, Profit for business is =…
Q: Total _____ costs remain unchanged when activity changes. Fixed cost Variable cost…
A: Cost: It refers to the aggregated amount that is spent on manufacturing a product.
Q: Explain two reasons why uncontrollable costs are included in the income statement
A: Introduction:- Uncontrollable costs are cannot be avoided. Which are necessary for production of…
Q: Revenue minus all direct costing of making the goods or supplying the service is known as? a. Gross…
A: All the direct costs to make the goods constitutes the cost of goods sold.
Q: pay is based on sales revenue, while Commission; piece-rate Piece-rate, commission Exempt, nonexempt…
A: Sales revenue is the amount of revenue received from sale of goods and services in the business.…
Q: Why is it that product costs are distinguished from period costs?
A: Product cost is the cost that is incurred to manufacture the product. The product cost will include…
Q: Why are product costs sometimes called inventoriable costs? Describe the flow of such costs ina…
A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…
Q: Throughput margin is equal to revenues minus direct materials and direct labor of the cost of goods…
A: Throughput margin = sales revenue - material cost .
Q: What is the danger in allocating common fixed costs among products or other segments of an…
A: The costs which are not allocated to any specific segment in the business organization are called…
Q: Manufacturing costs that cannot be classified as either direct materials or direct labor are known…
A: Manufacturing costs is the cost incurred in the production of any product or unit of the company.…
Q: For product costs to become expenses, The product must be completed The product must be finished The…
A: Cost of goods sold are considered as Expenses of the businesses. The cost of goods sold is…
Q: Which of these costs is considered as the most important cost because if it is not met, an…
A: A company income statement will report the net income as the total revenue in excess of the total…
Q: An allocation base! O a. is a measure used to assign prime costs to products and services O b.…
A: An allocation base is the basis on which Cost accounting allocates overhead costs. An allocation…
Q: Under variable costing system only those costs of production that vary (variable) with production…
A: Variable costing is also called marginal costing. Under variable costing all variable cost that is…
Q: 1.-A joint cost is a cost that benefits more than one product. II.-A by-product is a product that is…
A: Answer- Correct Option is Option D - Both Statements are TRUE.
Q: is this still applicable if the company uses cost model?
A: Under cost model, the property is recorded at cost less accumulated depreciation and impairment…
Q: TRUE OR FALSE ABC's objective is to trace costs to products or services as directly as possible.
A: Activity-based costing. This is an overhead allocation method in which overhead and Indirect costs…
Q: Product costs are also called: * Direct costs. Overhead costs. Manufacturing overhead costs None of…
A: Product cost includes, Cost which is arises to manufacture a product directly i.e Direct Material ,…
Q: Which of the following costs would not be inventoriable? Indirect labor cost Office rent factory…
A: Inventoriable cost means the cost which will be considered while valuing the inventories. Only the…
Q: I - Lumber can be both a finished product and a material. II - Like product costs, period costs are…
A: Lumber can be used as finished goods or as raw material. The wood from cutting a tree roughly is…
Q: This is only the information given to us: 1) How much is the cost of goods manufactured?
A: Cost of goods manufactured shows total costs incurred on the manufacture and production of goods in…
Q: Costs that are treated as assets until the product is sold are called O A. Conversion cost B.…
A: The correct answer in the given question is: (D) Product Costs
Q: In Make or buy decision ,irrelevant costs are : Select one: a. manufacturing costs that will be…
A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…
Q: Why is it important to know the true cost for a product or service?
A: True Cost and its importance The meaning of true cost is simple term is the the distinguish between…
Q: Standard costs are preset costs for delivering a product or service under normal conditlons. True or…
A: Lets understand the basics. Management prepares the standard cost sheet which contain details about…
Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…
A: Using marginal costing, only variable costs are included in product cost.
Q: fixed costs (F), variable costs (V), or mixed costs(M).
A: Fixed cost - Fixed cost remains constant irrespective of the level of activity. It is an unavoidable…
Q: For manufacturing costs to become expenses: O The product must be finished. The product must be…
A: Manufacturing cost is the total cost incurred in manufacturing the product. It includes the material…
Q: Costs that are treated as assets until the product is sold are
A: Asset is a resource from which a entity expects future economic benefits from usage of such asset.
Q: For manufacturing costs to become expenses: The product must be finished. The product must be…
A: Cost of goods manufactured: It refers to the aggregated expense incurred by the business in the…
Q: The object of the manufacturing account it ? reached to cost of goods sold. prime cost. cost of raw…
A: The manufacturing account represents the accumulated cost of goods manufactured in the production…
Q: Which of the following is not a manufacturing cost? * Manufacturing overhead O Direct materials O…
A: In cost accounting, There are many types of costs or expenses incurred for the production of the…
Q: Classify the following manufacturing costs of Business Solutions as either (a) variable (V) or fixed…
A: Variable cost is the cost which changes with the change in production. With every increase in…
Q: Which of the following is NOT a reason for companies to assign costs to products or services? O to…
A: Generally companies will asign costs to products and services for decision making purpose
Q: why service industry not involved production cost and retail industry involve in production cost?
A: In the method of Job costing a particular service is obtained by allocating costs to a distinct…
Q: Under variable costing, all fixed costs (including fixed product costs) are expense in the period…
A: The matching principle is the fundamental concept of accounting. It suggests that the expenses…
Q: 1. The amount of increase or decrease in revenue that is expected from a particular course of action…
A: Differential costing is a technique where differential costs are considered relevant. Differential…
Q: Which of the cost below is not classified as fixed cost? a) Depreciation of machine b)…
A: Fixed cost is the cost which remains fixed irrespective of actual production .
Q: Manufacturing costs that cannot be dassifled as either direct materials or direct labor are known as…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Conversion Costs are composed of direct labor and overhead. * True False Can be true, can be false…
A: Conversation cost: it is the cost incurred to convert raw material into finished goods.…
Q: Indirect cost is the cost that cannot be directly attributed to the production as these costs are…
A: Cost is the amount incurred in the regular course of the business. It may be direct or indirect.
Q: Which of the following is NOT true ? a. The salary of the factory manager is considered…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
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- NEED IT ASAP LO.3 (FIFO cost assignment) In October 2010, Tibbetts Company had the following production and cost data:Beginning inventory units (80% complete as to DM;45% complete as to DL; 30% complete as to OH)42,600October completed production 1,570,000Units in ending inventory (35% complete as to DM;15% complete as to DL; 5% complete as to OH) 28,400Beginning inventory cost $458,482October direct material cost per EUP $10.74October direct labor cost per EUP $13.88October overhead cost per EUP $24.80 a. What is the cost of the beginning inventory transferred out in October?b. What is the total cost transferred out in October?c. What is the cost of ending inventory at the end of October?d. What is the total cost to account for during October?PROBLEM 2–25 Working with Incomplete Data from the Income Statement and Schedule of Cost ofGoods Manufactured [ LO4 , LO5 ]Supply the missing data in the following cases. Each case is independent of the others. Case1 2 3 4Schedule of Cost of Goods ManufacturedDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $4,500 $6,000 $5,000 $3,000Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? $3,000 $7,000 $4,000Manufacturing overhead . . . . . . . . . . . . . . . . . . $5,000 $4,000 ? $9,000Total manufacturing costs . . . . . . . . . . . . . . . . . $18,500 ? $20,000 ?Beginning work in process inventory . . . . . . . . . $2,500 ? $3,000 ?Ending work in process inventory . . . . . . . . . . . ? $1,000 $4,000 $3,000Cost of goods manufactured . . . . . . . . . . . . . . . $18,000 $14,000 ? ?Income StatementSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000 $21,000 $36,000 $40,000Beginning fi nished goods inventory . . . . . . . .…Working with Incomplete Data from the Income Statement and Schedule of Cost ofGoods Manufactured [ LO4 , LO5 ]Supply the missing data in the following cases. Each case is independent of the others. Case 1 2 3 4 Schedule of Cost of Goods Manufactured Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . $4,500 $6,000 $5,000 $3,000 Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? $3,000 $7,000 $4,000 Manufacturing overhead . . . . . . . . . . . . . . . . . . $5,000 $4,000 ? $9,000 Total manufacturing costs . . . . . . . . . . . . . . . . . $18,500 ? $20,000 ? Beginning work in process inventory . . . . . . . . . $2,500 ? $3,000 ? Ending work in process inventory . . . . . . . . . . . ? $1,000 $4,000 $3,000 Cost of goods manufactured . . . . . . . . . . . . . . . $18,000 $14,000 ? ? Income Statement Sales . . . . . . . . . . . . . . . . . . . . . . . . .…
- Info in images Question relating to the images: 3. Info in image "ACC PT2" 4. Compute the unadjusted cost of goods sold for the year. Do not include any underapplied or overapplied overhead in your answer. Unadjusted cost of goods sold [ ] 5. Assume that the $38,000 ending balance in Work in Process includes $8,600 of direct materials. Given this assumption, supply the information missing below: Direct materials $8,600 Direct labor [ ] Manufacturing overhead [ ] Work in process inventory $38,000Problem: AAA Company produces and sells Product X: Annual Demand 24,000 units Annual cost to held one unit of inventory P11.52 Order Cost P38.40 Beg. Inventory P 0 a. What is the Economic Order Quantity? b. How much is the total Order Costs? c. How much is the total Carrying Costs?32 S1: When raw materials are requisitioned and placed into production, the Raw Materials Inventory account is debited.S2: Over-applied overhead that is material in amount is closed to the Cost of Sales account at year-end. Group of answer choices False; False True; True True; False False; True
- Exercise 2: Flow of Cost - Cost System You are required to compute for the unknowns in the following accounts: Materials Inventory 7,950 Purchase Returns 750 Purchases 27,500 Direct Materials ? Indirect Materials (e) Inventory, end 5,100 Work in Process Inventory 13,650 Cost of Goods Sold Completed (c) Direct Materials Cost 23,500 Direct Labor Cost (a) Factory Overhead Applied (100% of direct labor cost) (b) Inventory 11,750 62,150 Finished Goods Inventory 12,500 Cost of Goods Sold (d) Cost of Goods Sold Completed ? Inventory, end 11,250Question 4Syarikat Layang uses the LIFO (Last-in, First-out) costing method for its perpetualinventory system. It had inventory on 1 January 2021 consisting of 400 articles boughtat RM4 each. The purchases during the month of January consisted of 800 at RM4.20each purchased on 8 January, and 2,000 at RM3.80 each on 18 January. It sold 2,400at RM5.00 each on 28 January. 40 of those sold were returned in perfect condition on31 January. The returned goods were bought on 18 January.Required: a. i. Calculate, by means of an inventory account the number and cost of the articles held in inventory during January 2021. ii. The unit price and total cost of the inventory. b. Show the trading account for the month ended 31 January 2021.Problem 2–41 Determine the missing amounts in each of the following independent cases. Case A Case B Case C Beginning inventory, raw material ...................................... ? $20,000 $15,000 Ending inventory, raw material ........................................... $90,000 ? $30,000 Purchases of raw material .................................................... 100,000 85,000 ? Direct material ..................................................................... 70,000 95,000 ? Direct labor .......................................................................... ? 100,000 125,000 Manufacturing overhead ...................................................... 250,000 ? 160,000 Total manufacturing costs.................................................... 520,000 345,000 340,000 Beginning inventory, work in process ................................ 35,000 20,000 ? Ending inventory, work in process ...................................... ? 35,000 5,000 Cost of goods…
- EA6. LO 10.2 Akira Company had the following transactions for the month. Number of Units cost per unit Beginning inventory 150 $1,500 Purchased Mar. 31 160 1,920 Purchased Oct. 15 130 1,950 Total goods available for sale 440 5,370 Ending inventory 50 ? Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A first-in, first-out (FIFO). B. last-in, first-out (LIFO) C. weighted average (AVG)1. Supply the missing data in the following cases, each case is independent of the others. Schedule of Cost of Goods ManufacturedDirect materials . . . . . . . . . . . . . . . . . . . . . .P 4,500Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . ?Manufacturing overhead . . . . . . . . . . . . . . . 5,000Total manufacturing costs . . . . . . . . . . . . . . 18,500Beginning work in process inventory . . . . . 2,500Ending work in process inventory . . . . . . . . ?Cost of goods manufactured . . . . . . . . . . . 18,000 Income StatementSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P 30,000Beginning finished goods inventory . . . . . 1,000Cost of goods manufactured . . . . . . . . . . . 18,000Goods available for sale . . . . . . . . . . . . . . . ?Ending finished goods inventory . . . . . . . . ?Cost of goods sold . . . . . . . . . . . . . . . . . . . . 17,000Gross margin . . . . . . . . . . . . . . . . . . . . . . . . 13,000Selling and administrative…Ch. 3 MG Homework Saved Help Save & Exit SubmitThe following four companies use a process cost system:Required:Treating each case independently, find the missing amount solana co. vista.co Ray Inc. Lindsay company conversion cost ? 235200 56350 ? direct labor 43000 ? 25300 13300 depreciation 2400 17400 ? 1500 manufacturing overhead 25500 143600 ? ? rent 16100 ? 10100 830 direct materials 89100 362050 39600 17050 supervisors salary 5200 19450 2700 1900 utilities ? 34200 8850 630