
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Production costs are inclusive of the following EXCEPT:
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- For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold, and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product 1. Property taxes, factory 2 Boxes used for packaging detergent produced by the company. 3. Salespersons commissions 4. Supervisor's salary factory 5. Depreciation, encive autos 6. Wages of workers assembling computers 7. Insurance, finished goods warehouses Lubricants for production equipment 9. Advertising costs 10. Microchips used in producing calculators 11. Shipping costs on merchandise soldarrow_forwardwhich of the following is typically a mixed cost? a. Rent for a factory building b. Total Manufacturing Overhead c. Hourly wages of plant workers d. Straight-line depreciation of plant machinery e. Sales commissionsarrow_forwardWhich of the following is a method used to allocate overhead costs based on the activities that drive those costs? A) Job costing B) Process costing C) Activity - based costing (ABC) D) Variable costingarrow_forward
- Classify each of the following costs as Product (direct/indirect) or Period and Variable, Fixed or Mixed. Costs Wages of assembly-line workers Depreciation of plant equipment Glue and nails for production Outbound delivery expense Raw materials handling costs Salary of marketing manager Production run setup costs Administrative office utilities Electricity cost of retail stores Research and development expense Product (Direct/Indirect) or Period Variable/Fixed/Miarrow_forwardPrime cost consists of: Select one: O A. Direct labour B. O C. Factory overheads O D. a) and c) above Direct materials and direct labourarrow_forwardWhich one of the following represents a period cost? a. Fringe benefits associated with factory workers. b. The VP of Sales' salary and benefits. C. Overhead allocated to the manufacturing operations. d. Labor costs associated with quality control.arrow_forward
- Determine difference between the three methods used for allocating factory overhead costs to products.arrow_forwardThe plant manager's salary * Product Cost Period Costarrow_forwardHow would sales salaries be classified for a manufacturing company? Group of answer choices product cost - administrative overhead product cost - factory overhead period cost - administrative expense period cost - selling expensearrow_forward
- What term refers to a grouping of costs that consists of direct labor and factory overhead costs and is considered to be the cost of converting the materials into a finished product? Group of answer choices prime costs conversion costs allocation costs just-in-time costsarrow_forwardWhat are the advantages and disavantages of the traditional, activity based costing, and multiple production department methods for allocating factory overhead?arrow_forwardIn Traditional product costing systems, the measure of product activity is usually some volume based cost driver, like direct labor hours. True or False?arrow_forward
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