Sales commissions are classified as: Non-manufacturing costs. Product costs. Indirect labor. None of the above If the amount of "cost of goods manufactured" during a period exceeds the amount of "total manufacturing costs" for the period, then, ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory. ending work in process is greater than the amount of the beginning work in process inventory. ending work in process is equal to the cost of goods manufactured. None of the above

Sales commissions are classified as: Non-manufacturing costs. Product costs. Indirect labor. None of the above If the amount of "cost of goods manufactured" during a period exceeds the amount of "total manufacturing costs" for the period, then, ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory. ending work in process is greater than the amount of the beginning work in process inventory. ending work in process is equal to the cost of goods manufactured. None of the above

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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Hello, I believe Answer 1 may have some errors. You included $4080 as the "indirect material used in production" but the original table has it listed as 4680. This may have changed the remainder of the answer including the "total manufacturing cost" and the "cost of good manufactured". Please advise. Thanks.
Aluminum used in the manufacturing of bicycles is an example of: Indirect Material: No & Period Cost: No Indirect Material: No & Period Cost: Yes Indirect Material: Yes & Period Cost: No Indirect Material: Yes & Period Cost: Yes
2.Costs that are incurred in bringing the inventories to their present location and condition are capitalized as cost of inventories and these include a.costs of designing products for specific customers. b.abnormal amount of wasted materials, labor and production costs. c. storage cost not necessary in the production process before a further production stage. d. selling costs.
Accounting Evman Company has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system or a labour-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: computer-assisted manufacturing system labour-intensive production system Direct Material $5.00 $5.60 Direct Labour .5DLH @ $12 $6.00 .8 DLH @ $9 $7.20 Variable Overhead .5 DLH @ $6 $3.00 .8 DLH @ $6 $4.80 Fixed Overhead * $2,440,000 $1,320,000 These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company’s marketing research department has recommended an introductory sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit…
Accounting Evman Company has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system or a labour-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: computer-assisted manufacturing system labour-intensive production system Direct Material $5.00 $5.60 Direct Labour .5DLH @ $12 $6.00 .8 DLH @ $9 $7.20 Variable Overhead .5 DLH @ $6 $3.00 .8 DLH @ $6 $4.80 Fixed Overhead * $2,440,000 $1,320,000 These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company’s marketing research department has recommended an introductory sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit…
23. Which of the following costs is relevant to a make-or-buy decision of a particular part of a product? a.The direct labor costs used to manufacture the part b.The depreciation on the plant used to manufacture the part c.The fixed annual rent paid for the office building d.The salary of the sales manager who sells the product
Requirement 1. Classify each cost as value-added, non-value-added, or in the gray area between. a. Materials and labor for servicing machine tools b. Rework costs c. Expediting costs caused by work delays d. Materials-handling costs e. Materials-procurement and inspection costs f. Preventive maintenance of equipment g. Breakdown maintenance of equipment Requirement 2. For any cost classified in the gray area, assume 96% is value-added and 4% is non-value-added. How much of the total of all seven costs is value-added and how much is non-value-added? Compute the total cost for the value-added and nonvalue-added costs, then compute what percentage of the total is value-added and how much is non-value-added. Total percent Total cost of total costs Value-added % Non-value-added % Total costs Requirement 3.…
The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below: Machine-Hours Repair Costs April 2,148 $ 33,102 May 2,177 $ 33,120 June 2,134 $ 33,097 July 2,214 $ 33,120 August 2,119 $ 33,030 September 2,230 $ 33,184 October 2,145 $ 33,071 November 2,225 $ 33,157 Management believes that repair cost is a mixed cost that depends on the number of machine-hours. Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to: Multiple Choice $1.25 per machine-hour plus $30,387 per month $0.80 per machine-hour plus $31,953 per month $0.98 per machine-hour plus $30,978 per month 15.00 per machine-hour plus $33,917 per month
ABC Company is introducing a new product. The managers are trying to decide whether to make one of its components or to buy it from an outside supplier. The space that could be used to make the part has no alternative use. The outside supplier will sell the part to ABC for P800 per unit. Following is an estimate of per-unit costs if ABC makes the part: Materials P225 ; Direct labor P250 ; Variable manufacturing overhead P225 ; Fixed manufacturing overhead P325. Fixed manufacturing overhead consists of depreciation on machinery and a share of the costs of the factory based on the floor space that manufacturing the part would occupy. Determine whether ABC should make or buy the part. Also you have to indicate the amount favoring the better alternative. please answer
The following standard costs pertain to a component part manufactured by Ashby Company:Direct materials$2Direct labour5Manufacturing overhead 20 Standard cost per unit $27The company can purchase the part from an outside supplier for $25 per unit. The manufacturing overhead is 60% fixed and this fixed portion would not be affected by this decision. Assume that direct labour is an avoidable cost in this decision. What is the relevant amount of the standard cost per unit to be considered in a decision of whether to make the part internally or buy it from the external supplier?
Which of the following would not generally be considered a fixed overhead cost?a. Straight line depreciation (No); Factory insurance (No); Units of production depreciation(No)b. Straight line depreciation (Yes); Factory insurance (No); Units of production depreciation(Yes)c. Straight line depreciation (Yes); Factory insurance (Yes); Units of productiondepreciation (No)d. Straight line depreciation (No); Factory insurance (Yes); Units of production depreciation(No)
26. Which of the following factor is irrelevant regarding a special order? a.The unused capacity of the plant that is used for the special order b.The labor costs for the special order c.The fixed overhead that can be avoided if the special order is not taken up d.The additional revenue from the special order