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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883
BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

Solutions

Chapter
Section
Chapter 10, Problem 1SEQ
Textbook Problem

Which 01 the following is not considered a cost of manufacturing a product
A. Direct materials cost

B. Factory overhead cost

C. Sales salaries

D. Direct labor cost

Expert Solution
To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To choose:

The cost which is not considered as cost of manufacturing a product

Answer to Problem 1SEQ

C. Sales Salaries

Explanation of Solution

Explanation for correct answer:

Sales Salaries are considered as administrative costs and not the manufacturing costs. Hence option c is the right answer.

Explanation for incorrect answers:

A. Direct Material cost is a manufacturing cost. Hence option A is incorrect answer.

B. Factory overhead cost is a manufacturing cost. Hence option B is incorrect answer.

D. Direct labor cost is a manufacturing cost. Hence option D is incorrect answer.

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Chapter 10 Solutions

Survey of Accounting (Accounting I)
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Ch. 10 - How does the use of the materials requisition help...Ch. 10 - a.Differentiate between the clock card and the...Ch. 10 - Describe the Source 01 the data for increasing...Ch. 10 - Discuss how the predetermined factory overhead...Ch. 10 - a.How is a predetermined factory overhead rate...Ch. 10 - a.What is (1) overapplied factory overhead and (2)...Ch. 10 - At the end of the fiscal year, there s a...Ch. 10 - What is the difference between a product cost and...Ch. 10 - Describe bow a job order cost system can be used...Ch. 10 - a. What is the objective of list-m-time...Ch. 10 - How can activity based costing be used in service...Ch. 10 - Classifying costs as materials, labor, or factory...Ch. 10 - Classifying costs as materials, labor, or factory...Ch. 10 - Classifying costs as factory overhead Which of the...Ch. 10 - Classifying costs as product or period costs For...Ch. 10 - Concepts and terminology From the choices...Ch. 10 - Transactions in a job order cost system Five...Ch. 10 - Cost flow relationships The following information...Ch. 10 - Cost of materials issuances An incomplete...Ch. 10 - Recording issuing of materials Materials issued...Ch. 10 - Amounts for materials Big Timber Furniture Company...Ch. 10 - Recording factory labor costs A summary of the...Ch. 10 - Recording factory labor costs The weekly time...Ch. 10 - Recording direct labor and factory overhead...Ch. 10 - Factory overhead rates and account balances...Ch. 10 - Predetermined factory overhead rate Novus Engine...Ch. 10 - Predetermined factory overhead rate Mt Ellis...Ch. 10 - Recording jobs completed The following account...Ch. 10 - Determining manufacturing costs Wagner Printing...Ch. 10 - Financial statements of a manufacturing firm The...Ch. 10 - Job order cost accounting entries for a service...Ch. 10 - Just-in-time principles The chief executive...Ch. 10 - Just-in-time as a strategy The American textile...Ch. 10 - Just-in-time principles Jupiter Shirt Company...Ch. 10 - Activity-based costing for a hospital Deer Lodge...Ch. 10 - Activity-based costing in an insurance company...Ch. 10 - Classifying costs The following is a list of costs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Job cost sheet Hallmark Furniture Company...Ch. 10 - Job cost sheet Hallmark Furniture Company...Ch. 10 - Analyzing manufacturing cost accounts Summer...Ch. 10 - Analyzing manufacturing cost accounts Summer...Ch. 10 - Flow of costs and income statement R-Tunes Inc. is...Ch. 10 - Flow of costs and income statement R-Tunes Inc. is...Ch. 10 - Unit cost analysis The management of Colfax...Ch. 10 - Unit cost analysis Hathaway Trophies Inc. uses a...Ch. 10 - Unit cost analysis Using the data from P10-3,...Ch. 10 - Unit cost analysis The controller of the plant of...Ch. 10 - Ethics and professional conduct in business...Ch. 10 - Financial vs. managerial accounting The following...Ch. 10 - Classifying costs Reboot Inc. provides computer...Ch. 10 - Classifying costs Reboot Inc. provides computer...Ch. 10 - Factory overhead rate Fabricator Inc., a...Ch. 10 - Factory overhead rate Fabricator Inc., a...Ch. 10 - Factory overhead rate Fabricator Inc., a...Ch. 10 - Classifying costs With a group of students, visit...Ch. 10 - Just-in-time principles Warm Space Inc....

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