A service company has the following costs.
A service company has the following costs.
direct materials
overhead costs
product costs
expensed in the period incurred
Homework Answers
A service company has the following costs -
- Overhead costs.
- Expensed in the period incurred.
A service company has the following costs
A service company has the following costs(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)? direct materials? overhead costs? product costs? expensed in the period incurred
Costs that are capitalized because they are expected to have future value are called product costs;...
Costs that are capitalized because they are expected to have future value are called product costs; costs that are expensed are called period costs. This classification is important because it affects the amount of costs expensed in the income statement and the amount of costs assigned to inventory on the balance sheet. Product costs are commonly made up of direct materials, direct labor, and overhead. Period costs include selling and administrative expenses. A service company has the following costs. (You...
Distinguish between inventoriable costs and period costs. O A. Inventoriable costs include direct manufacturing materials and...
Distinguish between inventoriable costs and period costs. O A. Inventoriable costs include direct manufacturing materials and direct manufacturing labor costs that are capitalized into inventory and remain on the balance sheet until sold. Period costs include indirect manufacturing (or manufacturing overhead) costs and are expensed as incurred through the cost of goods sold account. B. Inventoriable costs include material costs and are capitalized as assets to the company until the items are sold. Period costs include labor and overhead costs...
Calculator Direct labor and direct materials are Oa. period costs and expensed when incurred Ob. product...
Calculator Direct labor and direct materials are Oa. period costs and expensed when incurred Ob. product costs and expensed when incurred Oc. period costs and expensed when the goods are sold Od. product costs and expensed when the goods are sold
Which of the following statements is correct? A. Product costs for a merchandiser are expensed as...
Which of the following statements is correct? A. Product costs for a merchandiser are expensed as selling, general, and administrative expensed when the related unit is sold. B. Period costs are relevant for purposes of calculating Gross Profit on the Income Statement for a both a merchandiser and a manufacturer. C. Product costs for a manufacturer are categorized as either direct material, direct labor, or manufacturing overhead costs. D. All links in the value chain applicable to a service company...
Calculator When Job 117 was completed, direct materials totaled $13,328; direct labor, $20,222; and factory overhead,...
Calculator When Job 117 was completed, direct materials totaled $13,328; direct labor, $20,222; and factory overhead, $12,410. A total of 1,915 units were produced at a per-unit cost of Oa. $1,915 Ob $45.960 Oc. $33,550 Od $24 Direct labor and direct materials are Oa. period costs and expensed when incurred Ob. product costs and expensed when incurred Oc: period costs and expensed when the goods are sold Od product costs and expensed when the goods are sold
Explain why product costs are capitalized but period costs are expensed in the current accounting period....
Explain why product costs are capitalized but period costs are expensed in the current accounting period. Explain how business activities and inventories for a manufacturing company, a merchandising company, and a service company differ. Distinguish between direct labor and indirect labor. Distinguish between (a) factory overhead and (b) selling and administrative overhead. Distinguish between direct material and indirect material. What product cost is both a prime cost and a conversion cost?
34. Which of the following is part of factory overhead cost? a. sales commissions b. depreciation of f...
34. Which of the following is part of factory overhead cost? a. sales commissions b. depreciation of factory equipment and machines c. depreciation of sales person's vehicle d. direct materials used ANSWER: b 35. Which of the following manufacturing costs is an indirect cost of producing a product? a. oil lubricants used for factory machinery b. commissions for sales personnel c. hourly wages of an assembly worker d. memory chips for a microcomputer manufacturer 36. All of the following could...
Hector Company has developed the following standard costs for its product for 2019: HECTOR COMPANY Standard Cost Card...
Hector Company has developed the following standard costs for
its product for 2019:
HECTOR COMPANY
Standard Cost Card
Product
A
Cost Element
Standard Quantity
×
Standard Price
=
Standard Cost
Direct materials
4 pounds
$3
$12
Direct labor
3 hours
8
24
Manufacturing overhead
3 hours
4
12
$48
The company expected to produce 30,000 units of Product A in 2020
and work 90,000 direct labor hours.
Actual results for 2020 are as follows:
•
31,000 units of Product A...
Classifying Costs The following is a list of costs that were incurred in the production and...
Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, r a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Classification Costs Period costs-administrative expense v a. Salary of chief compliance officer of company b....
Distinguish between inventoriable costs and period costs. O A. Inventoriable costs include direct manufacturing materials and direct manufacturing labor costs that are capitalized into inventory and remain on the balance sheet until sold. Period costs include indirect manufacturing (or manufacturing overhead) costs and are expensed as incurred through the cost of goods sold account. B. Inventoriable costs include material costs and are capitalized as assets to the company until the items are sold. Period costs include labor and overhead costs...
Calculator Direct labor and direct materials are Oa. period costs and expensed when incurred Ob. product costs and expensed when incurred Oc. period costs and expensed when the goods are sold Od. product costs and expensed when the goods are sold
Calculator When Job 117 was completed, direct materials totaled $13,328; direct labor, $20,222; and factory overhead, $12,410. A total of 1,915 units were produced at a per-unit cost of Oa. $1,915 Ob $45.960 Oc. $33,550 Od $24 Direct labor and direct materials are Oa. period costs and expensed when incurred Ob. product costs and expensed when incurred Oc: period costs and expensed when the goods are sold Od product costs and expensed when the goods are sold
Hector Company has developed the following standard costs for
its product for 2019:
HECTOR COMPANY
Standard Cost Card
Product
A
Cost Element
Standard Quantity
×
Standard Price
=
Standard Cost
Direct materials
4 pounds
$3
$12
Direct labor
3 hours
8
24
Manufacturing overhead
3 hours
4
12
$48
The company expected to produce 30,000 units of Product A in 2020
and work 90,000 direct labor hours.
Actual results for 2020 are as follows:
•
31,000 units of Product A...
Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, r a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Classification Costs Period costs-administrative expense v a. Salary of chief compliance officer of company b....
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