E. Identify which of the following costs of a product manufacturer would be included in inventories: • Salaries of assembly line workers Raw materials • Salary of factory foreman • Heating cost for the factory • Miscellaneous supplies used in production process • Salary of the CEO • Costs to ship raw materials from the supplier to the factory • Electricity cost for the factory • Salaries of the sales team • Depreciation of factory machines • Property taxes on factory building • Discounts for early payment of raw material purchases • Salaries of the factory's janitorial staff

E. Identify which of the following costs of a product manufacturer would be included in inventories: • Salaries of assembly line workers Raw materials • Salary of factory foreman • Heating cost for the factory • Miscellaneous supplies used in production process • Salary of the CEO • Costs to ship raw materials from the supplier to the factory • Electricity cost for the factory • Salaries of the sales team • Depreciation of factory machines • Property taxes on factory building • Discounts for early payment of raw material purchases • Salaries of the factory's janitorial staff

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For each of the following costs, identify whether it is a Fixed, Variable or Both: Cost Wages of assembly-line workers Depreciation-office equipment Glue and fasteners Delivery costs Raw materials handling costs Salary of marketing manager Production run setup costs Plant utilities Electricity cost of manufacturing plant Research and development expenses Type
23. Which of the following costs is relevant to a make-or-buy decision of a particular part of a product? a.The direct labor costs used to manufacture the part b.The depreciation on the plant used to manufacture the part c.The fixed annual rent paid for the office building d.The salary of the sales manager who sells the product
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