Consider the following items: Tomatoes used in the manufacture of Del monte ketchup Administrative salaries of executives employed by Del mote company Wages of factory workers who worked directly in the ketchup production Marketing expenditures of Del Monte Commissions paid to Del Monte's salespeople Straight-line depreciation on manufacturing equipment owned by Del Monte Shipping charges incurred by Del Monte on out-going orders Tomatoes used in the manufacture of Del Monte's tomato paste Insurance costs related to Del Monte's manufacturing plant P2,250,000 1,236,000 1,500,000 145,000 450,000 125,000 65,000 1,246,000 520,000 Compute the Direct cost traceable to the specific products (ketchup and tomato paste).

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4PA: Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable...
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Consider the following items:
Tomatoes used in the manufacture of Del monte ketchup
Administrative salaries of executives employed by Del mote company
Wages of factory workers who worked directly in the ketchup production
Marketing expenditures of Del Monte
Commissions paid to Del Monte's salespeople
Straight-line depreciation on manufacturing equipment owned by Del Monte
Shipping charges incurred by Del Monte on out-going orders
Tomatoes used in the manufacture of Del Monte's tomato paste
Insurance costs related to Del Monte's manufacturing plant
P2,250,000
1,236,000
1,500,000
145,000
450,000
125,000
65,000
1,246,000
520,000
Compute the Direct cost traceable to the specific products (ketchup and tomato paste).
Transcribed Image Text:Consider the following items: Tomatoes used in the manufacture of Del monte ketchup Administrative salaries of executives employed by Del mote company Wages of factory workers who worked directly in the ketchup production Marketing expenditures of Del Monte Commissions paid to Del Monte's salespeople Straight-line depreciation on manufacturing equipment owned by Del Monte Shipping charges incurred by Del Monte on out-going orders Tomatoes used in the manufacture of Del Monte's tomato paste Insurance costs related to Del Monte's manufacturing plant P2,250,000 1,236,000 1,500,000 145,000 450,000 125,000 65,000 1,246,000 520,000 Compute the Direct cost traceable to the specific products (ketchup and tomato paste).
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