The cost of inventory reported on the balance sheet may include all the following except: Wages of the plant supervisor. Depreciation of the factory equipment. Customer-service costs. The cost of parts used in the manufacturing process.

The cost of inventory reported on the balance sheet may include all the following except: Wages of the plant supervisor. Depreciation of the factory equipment. Customer-service costs. The cost of parts used in the manufacturing process.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 11MC: In a job order cost system, which account shows the overhead used by the company? A. work in process...

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

The cost of inventory reported on the balance sheet may include all the following except:

Wages of the plant supervisor.
Depreciation of the factory equipment.
Customer-service costs.
The cost of parts used in the manufacturing process.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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