Pharoah Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on factory Property taxes on store Labor costs of assembly-line workers Factory supplies used i Advertising expense Property taxes on factory Delivery expense Sales commissions Salaries paid to sales clerks $140,000 67,200 8,400 123,200 25,760 50,400 21.280 23,520 39,200 56,000 Work in process inventory was $30,240 at January 1 and $17.360 at December 31. Finished goods inventory was $72,800 at January 1 and $56,640 at December 31. (Assume all raw materials used were direct materials)

3. As product costs expire(expensed), they become part of a. selling expenses. b. inventory. C. cost of goods sold. d. sales revenue.

The Giga Company produces tablet computers. The following information is provided: a) Materials used $216,000 $40,000 $20,000 $50,000 $12,000 $22,000 $80,000 $56,000 $60,000 $18,000 $12,000 $8,000 $14,000 b) Advertising c) Insurance, factory d) Administrative salaries e) Property taxes, factory f) Utilities, administrative building g) Factory labor h) Sales commissions i) Factory supervisor's salary j) Research and development k) Depreciation, factory 1) Depreciation, office m) Indirect materials Classify each of the company's costs as a period cost (general, selling, and administrative cost) or as a direct or indirect product cost. Enter the dollar amount of the cost in the appropriate column. After entering all amounts, calculate the total general, selling, and administrative cost, the total direct product cost, and the total indirect product cost.

Which of the following statements correctly complete the sentence:"Gross Margin equals":I.   sales revenue less (minus) cost of goods sold.II.  contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV.  sales revenue less (minus) cost of goods manufactured.