Which of the following is not a product cost?O a. Insurance on the plantO b. Raw materials usedO c. Indirect labourO d. Advertising expense The Ammad Company manufactures a product in a single process. The following informationis available:Work-in-process, January 1Units started in productionUnits completed and transferred outWork-in-process, December 31Production costs:-0-14,0009,0005,000Direct Materials$385,000Direct LabourManufacturing OverheadTotal cost to account for139,75086,000$610,750The units still in process are 100% complete with respect to direct materials and 35%complete with respect to conversion costs.The cost per equivalent unit for direct materials is?O a. $27.50O b. $77.00Oc. $35.80O d. $42.80

Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Answered: Which of the following is not a product…

Which of the following is not a product cost? O a. Insurance on the plant O b. Raw materials used O c. Indirect labour O d. Advertising expense

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8MC: Which of the following is not considered a product cost? A. direct materials B. direct labor C....

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Which of the following is not a product cost?
O a. Insurance on the plant
O b. Raw materials used
O c. Indirect labour
O d. Advertising expense

The Ammad Company manufactures a product in a single process. The following information
is available:
Work-in-process, January 1
Units started in production
Units completed and transferred out
Work-in-process, December 31
Production costs:
-0-
14,000
9,000
5,000
Direct Materials
$385,000
Direct Labour
Manufacturing Overhead
Total cost to account for
139,750
86,000
$610,750
The units still in process are 100% complete with respect to direct materials and 35%
complete with respect to conversion costs.
The cost per equivalent unit for direct materials is?
O a. $27.50
O b. $77.00
Oc. $35.80
O d. $42.80

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