With examples, explain the three elements of cost incurred in manufacturing a product.
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With examples, explain the three elements of cost incurred in manufacturing a product.
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- Identify and describe the three types of product costs in a manufacturing firm.What are the three categories of manufacturing costs included in the cost of finished goods and the cost of work in process?Which of the following are prime costs? A. indirect materials, indirect labor, and direct labor B. direct labor, indirect materials, and indirect labor C. direct labor and indirect labor D. direct labor and direct materials
- Using the costs listed in the previous problem, classify the costs as either product costs or period costs.Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and fixed manufacturing overhead D. direct material, direct labor, and all variable manufacturing overheadComplete the information in the cost computations shown here:
- Product (or manufacturing) costs consist of a. direct materials, direct labor, and selling costs. b. direct materials, direct labor, manufacturing overhead, and operating expense. c. administrative costs and conversion costs. d. prime costs and manufacturing overhead. e. selling and administrative costs.Which of the following is the step in which materials, labor, and overhead are detailed? A. determining the units to which costs are assigned B. determining the equivalent units of production C. determining the cost per equivalent units D. allocating the costs to the units transferred out and the units partially completedWhat are the similarities in calculating the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold?
- Which of the following is a conversion cost? A. raw materials B. direct labor C. sales commissions D. direct material usedFrenchys has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?Describe the product life cycle. How do unit-level costs behave in relation to the product life cycle? Batch-level costs? Product-level costs? Facility-level costs?