Homework Answers
1. Identify the following costs as product or period costs and placing on "X"
2. What is the difference between Product and period cost ? Why do we care ?
Product cost costs are costs incurred to manufacture a product, which are very necessary to produce the product and assignable to the output product. These Costs can be identified by product. For example, Direct materials, Labor, all indirect expenses incurred to manufacture a product are product costs.
Period cost are cost incurs periodically in a manufacturing unit from time to time whether in uniform basis or not, but based on the time. These type of costs are identifiable per month or per quarter or per year. Some of the Examples for period cost are, Rent, Power, Insurance, interest etc.
We should take care about the difference of product and period costs while preparing cost sheet to know which is product based cost and changes proportionally to the change in out put and at the same time which is period cost that will change according to the time but not based on the product. For example, Rent for the building does not change with change in level of production. It is period based cost and not depend on level of production.
3. Can you provide other name for the term Product cost ?
Product cost is also called as PRODUCT UNIT COST.
Add Answer to:
Nutini Shoes Company Income Statement For the Month Ending August 31 Sales Less operating expenses: $450,000...
Sales Less operating expenses: $450,000 Direct labor cost Raw materials purchased Manufacturing overhead Selling/ admin. expenses...
Sales Less operating expenses: $450,000 Direct labor cost Raw materials purchased Manufacturing overhead Selling/ admin. expenses $70,000 165,000 85,000 142,000 462,000 ($12,000 Net operating loss ) ー Inventory balances: Raw Materials Work in process Finished goods August 1August 31 $8,000 $13,000 $16,000$21,000 $40,000 $60,000 That's not right! Something is wrong. Can you correct this income statement? Nutini Shoes Company Income Statement Raw material used For the Month Ending August 31 Cost of Goods Manufactured Cost of Goods Sold
EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $780,000 Less: Operating...
EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $780,000 Less: Operating expenses Raw materials purchases Direct labor cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense $264,000 190,000 90,000 75,000 60,000 45,000 31,000 28,000 12,000 8,000 803,000 Net loss $23,000 ) Prior to October 2017, the company had been profitable every month. The company's president is concerned about...
PEPPER COMPANY Income Statement For Year Ended December 31, 2015 Operating expenses Income (loss) before tax...
PEPPER COMPANY Income Statement For Year Ended December 31, 2015 Operating expenses Income (loss) before tax 1-b. Prepare the current assets section of the balance sheet for each company. GARCON COMPANY Partial Balance Sheet As of December 31, 2015 Inventories Total current assets PEPPER COMPANY Partial Balance Sheet As of December 31, 2015 Inventories Total current assets Hints References eBook & Resources Using the following data, Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental...
Pacheco Pachinko Manufacturing Income Statement for the Month Ending February 28, 2017 120,000 Sales (4,000 units...
Pacheco Pachinko Manufacturing Income Statement for the Month Ending February 28, 2017 120,000 Sales (4,000 units at $30 each) Less Manufacturing Costs Direct Material Direct Labor Variable Factory Overhead Fixed Factory Overhead 24,000 30,000 6,000 15,000 75,000 Gross Margin 45,000 Less Selling & Admin Expense Variable Selling & Admin Fixed Selling & Admin 12,000 21,000 33,000 12,000 Net Operating Income Contribution Margin Format Income Statement Sales
Prepare an income statement for Delray Mfg. (a manufacturer). DELRAY MFG. Income Statement For Year Ended December 31,...
Prepare an income statement for Delray Mfg. (a manufacturer). DELRAY MFG. Income Statement For Year Ended December 31, 2017 Cost of goods sold Cost of goods available for sale Cost of goods sold Operating expenses Total operating expenses Operating income Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies...
2. Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and...
2. Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. LEONE COMPANY Income Statement For Year Ended December 31, 2019 Cost of goods sold Goods available for sale Cost of goods sold Operating expenses Selling expenses Total selling expenses ses General and administrative expenses Total general and administrative expenses Total operating expenses Income before taxes Net income Required information [The following information applies to the questions displayed below.] The...
Shanika Company Income Statement For the Year Ended December 31, 2046 Sales Cost of good sold:...
Shanika Company Income Statement For the Year Ended December 31, 2046 Sales Cost of good sold: Finished goods inventory, January 1, 2046 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2046 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salaries expense Depreciation expense-office equipment Property taxes-headquarters building Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net income 1. Prepare the 2016 statement of cost of goods manufactured....
2. Prepare an income statement. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $...
2. Prepare an income statement. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $ $ 575,000 $ CA Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending Gross margin Less operating expenses: Selling expenses Administrative expenses 35,000 375,100 410,100 (70,000) 340,100 (84,000) (122,000) (575,000) Sales 781,000 3. What was the average cost per unit for direct materials and factory depreciation? (R answers to 2 decimal...
Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials...
Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 1,115,000 36,000 51,600 67,500 158,200 235,000 22, 200 45,000 5,250 57,000 90,000 141,000 48,300 42,400 74,500 DELRAY MFG. Schedule of Cost of Goods Manufactured For Year Ended...
Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income...
Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December: On Company Off Company Materials inventory, December 1 $71,830 $94,820 Materials inventory, December 31 (a) 107,150 Materials purchased 182,450 213,350 Cost of direct materials used in production 192,500 (a) Direct labor 270,800 (b) Factory overhead 84,040 106,200 Total manufacturing costs incurred in December (b) 613,490 Total manufacturing...
Sales Less operating expenses: $450,000 Direct labor cost Raw materials purchased Manufacturing overhead Selling/ admin. expenses $70,000 165,000 85,000 142,000 462,000 ($12,000 Net operating loss ) ー Inventory balances: Raw Materials Work in process Finished goods August 1August 31 $8,000 $13,000 $16,000$21,000 $40,000 $60,000 That's not right! Something is wrong. Can you correct this income statement? Nutini Shoes Company Income Statement Raw material used For the Month Ending August 31 Cost of Goods Manufactured Cost of Goods Sold
EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $780,000 Less: Operating expenses Raw materials purchases Direct labor cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense $264,000 190,000 90,000 75,000 60,000 45,000 31,000 28,000 12,000 8,000 803,000 Net loss $23,000 ) Prior to October 2017, the company had been profitable every month. The company's president is concerned about...
PEPPER COMPANY Income Statement For Year Ended December 31, 2015 Operating expenses Income (loss) before tax 1-b. Prepare the current assets section of the balance sheet for each company. GARCON COMPANY Partial Balance Sheet As of December 31, 2015 Inventories Total current assets PEPPER COMPANY Partial Balance Sheet As of December 31, 2015 Inventories Total current assets Hints References eBook & Resources Using the following data, Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental...
Pacheco Pachinko Manufacturing Income Statement for the Month Ending February 28, 2017 120,000 Sales (4,000 units at $30 each) Less Manufacturing Costs Direct Material Direct Labor Variable Factory Overhead Fixed Factory Overhead 24,000 30,000 6,000 15,000 75,000 Gross Margin 45,000 Less Selling & Admin Expense Variable Selling & Admin Fixed Selling & Admin 12,000 21,000 33,000 12,000 Net Operating Income Contribution Margin Format Income Statement Sales
Prepare an income statement for Delray Mfg. (a manufacturer). DELRAY MFG. Income Statement For Year Ended December 31, 2017 Cost of goods sold Cost of goods available for sale Cost of goods sold Operating expenses Total operating expenses Operating income Required information The following selected account balances are provided for Delray Mfg. Sales Raw materials inventory, Dec. 31, 2016 Work in process inventory, Dec. 31, 2016 Finished goods inventory, Dec. 31, 2016 Raw materials purchases Direct labor Factory computer supplies...
2. Prepare the company's 2019 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. LEONE COMPANY Income Statement For Year Ended December 31, 2019 Cost of goods sold Goods available for sale Cost of goods sold Operating expenses Selling expenses Total selling expenses ses General and administrative expenses Total general and administrative expenses Total operating expenses Income before taxes Net income Required information [The following information applies to the questions displayed below.] The...
Shanika Company Income Statement For the Year Ended December 31, 2046 Sales Cost of good sold: Finished goods inventory, January 1, 2046 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2046 Cost of goods sold Gross profit Operating expenses: Administrative expenses: Office salaries expense Depreciation expense-office equipment Property taxes-headquarters building Selling expenses: Advertising expense Sales salaries expense Total operating expenses Net income 1. Prepare the 2016 statement of cost of goods manufactured....
2. Prepare an income statement. MERIWELL COMPANY Income Statement For the Year Just Completed Sales $ $ 575,000 $ CA Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured Goods available for sale Deduct: Finished goods inventory, ending Gross margin Less operating expenses: Selling expenses Administrative expenses 35,000 375,100 410,100 (70,000) 340,100 (84,000) (122,000) (575,000) Sales 781,000 3. What was the average cost per unit for direct materials and factory depreciation? (R answers to 2 decimal...
Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 1,115,000 36,000 51,600 67,500 158,200 235,000 22, 200 45,000 5,250 57,000 90,000 141,000 48,300 42,400 74,500 DELRAY MFG. Schedule of Cost of Goods Manufactured For Year Ended...
Most questions answered within 3 hours.
-
What is a population?
Select one:
a. All of the individual organisms belonging to the same...
asked 10 seconds from now -
You have a yeast cell culture with a concentration of 5x10^4
cells/ml. If you dilute this...
asked 3 minutes ago -
In which direction the Reaction goes? Show detailed process.
SeO3 + 2ClO2. + 2H3O <---> Se...
asked 17 minutes ago -
Unexposed silver halides are removed from photographic film when
they react with sodium thiosulfate
(Na2S2O3, called...
asked 17 minutes ago -
A 0.3054 gram sample of the mineral chalcopyrite (CuFeS2)
yielded 0.6525 gram BaSO4 precipitate. What is...
asked 17 minutes ago -
An short-seller in Tesla is worried the latest management
earnings forecast is too aggressive and the...
asked 1 hour ago -
Question 3 (1 point)
Fill in the blank. Speed Car Rental company found that the tire...
asked 1 hour ago -
1. A copper wire is 26.61 cm long and weighs 1.265 g. The
density of copper...
asked 41 minutes ago -
Remember that a concept sketch consists of a sketch (or
series of sketches), labels, and complete...
asked 43 minutes ago -
on a newly discovered planet, the period of a pendulum with a
length of 2 m...
asked 46 minutes ago -
Why [M(CN)6] is not organometallic even it has metal
to carbon bond too
asked 52 minutes ago -
mstar electric has a bond issue outstanding that has a 20 year
life, a $1,000 par...
asked 59 minutes ago