Which of the following statements is correct using the direct costing concept? A) All manufacturing costs...
Which of the following statements is correct using the direct costing concept?
A) All manufacturing costs are considered period costs.
B)Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs.
C)All manufacturing costs are included in the calculation of cost of goods manufactured.
D)Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs.
Homework Answers
Direct costing concept : Direct costing is a costing which included only direct cost for cost of goods manufactured.
it does not includes any relevant cost for cost of goods manufactured.
so answer is b) B)Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs.
Add Answer to:
Which of the following statements is correct using the direct
costing concept?
A) All manufacturing costs...
ncome Statements under The reporting of the costs of manufactured products, normally direct materials, direct labor,...
ncome Statements under The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.Absorption Costing and The concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead).Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (13,500 units) $1,350,000 Production costs (17,000 units): Direct materials $629,000 Direct labor 302,600 Variable factory overhead 151,300 Fixed factory overhead 100,300 1,183,200 Selling and administrative expenses: Variable selling and administrative expenses $183,400 Fixed selling and administrative expenses 71,000 254,400...
Which of the following statements is true of absorption costing? a. It is used only for...
Which of the following statements is true of absorption costing?a. It is used only for internal reporting purposes.b. It assigns all manufacturing costs to the product.c. It treats fixed selling overhead as a product cost.d. It treats fixed manufacturing overhead as a period cost.Determine the value of ending inventory under variable costing.a. $ 1,050,000b. $ 570,000c. $ 690,000d. $ 750,000Determine the cost of goods sold under absorption costing.a. $ 360,000b. $ 500,000c. $ 400,000d. $ 540,000
g. Which of the following are included in manufacturing overhead? 1) All direct material, direct labour,...
g. Which of the following are included in manufacturing overhead? 1) All direct material, direct labour, and administrative costs 2) All manufacturing costs except direct labour 3) All manufacturing costs except direct labour and direct materials 4) All selling and administrative costs h. Which of the following statements describes the treatment of period costs? 1) They will never constitute part of the cost of goods manufactured statement but will always be part of the income statement. 2) They will always...
Which of the following is true of absorption costing? It expenses marketing costs as cost of...
Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats direct manufacturing costs as a period cost. It includes fixed manufacturing overhead as an inventoriable D) It treats indirect manufacturing costs as a period cost. Answer: 17. Which of the following is true of variable costing? A) It expenses administrative costs as cost of goods sold. B) It treats direct manufacturing costs as a product cost. It includes fixed manufacturing...
Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 6,400 hats, of which 5,200 were sold. Operating data for the month are summarized as follows: Sales $104,000 Manufacturing costs: Direct materials $47,360 Direct labor 22,400 Variable manufacturing cost 12,160 Fixed manufacturing cost 15,360 97,280 Selling and administrative expenses: Variable $10,920 Fixed 5,200 16,120 During August, Head Gear Inc. manufactured 4,000 hats and sold 5,200 hats....
Under full absorption costing, which of the following are included in product costs? A. Only conversion...
Under full absorption costing, which of the following are included in product costs? A. Only conversion costs. B. Only variable manufacturing costs. C. Only direct materials and direct labor. D. All fixed and variable manufacturing costs.
Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats...
Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats direct manufacturing costs as a period cost. It includes fixed manufacturing overhead as an inventoriable D) It treats indirect manufacturing costs as a period cost. Answer: 17. Which of the following is true of variable costing? A) It expenses administrative costs as cost of goods sold. B) It treats direct manufacturing costs as a product cost. It includes fixed manufacturing...
Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 28,200 hats, of which 26,200 were sold. Operating data for the month are summarized as follows: Sales $251,520 Manufacturing costs: Direct materials $155,100 Direct labor 39,480 Variable manufacturing cost 19,740 Fixed manufacturing cost 16,920 231,240 Selling and administrative expenses: Variable $13,100 Fixed 9,560 22,660 During August, Head Gear Inc. manufactured 24,200 hats and sold 26,200 hats....
If the variable costing concept is followed, which of the following costs would be included as...
If the variable costing concept is followed, which of the following costs would be included as part of the cost of product manufactured? (1) Depreciation on plant; (2) Direct labor; (3) Direct materials; (4) Property taxes on plant; (5) Insurance on plant; (6) Electricity purchased to operate machinery.
Which of the following statements is true of absorption costing?a. It is used only for internal reporting purposes.b. It assigns all manufacturing costs to the product.c. It treats fixed selling overhead as a product cost.d. It treats fixed manufacturing overhead as a period cost.Determine the value of ending inventory under variable costing.a. $ 1,050,000b. $ 570,000c. $ 690,000d. $ 750,000Determine the cost of goods sold under absorption costing.a. $ 360,000b. $ 500,000c. $ 400,000d. $ 540,000
Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats direct manufacturing costs as a period cost. It includes fixed manufacturing overhead as an inventoriable D) It treats indirect manufacturing costs as a period cost. Answer: 17. Which of the following is true of variable costing? A) It expenses administrative costs as cost of goods sold. B) It treats direct manufacturing costs as a product cost. It includes fixed manufacturing...
Which of the following is true of absorption costing? It expenses marketing costs as cost of goods sold. It treats direct manufacturing costs as a period cost. It includes fixed manufacturing overhead as an inventoriable D) It treats indirect manufacturing costs as a period cost. Answer: 17. Which of the following is true of variable costing? A) It expenses administrative costs as cost of goods sold. B) It treats direct manufacturing costs as a product cost. It includes fixed manufacturing...
Most questions answered within 3 hours.
-
A sock stuck to the side of a clothes-dryer barrel has a
centripetal acceleration of 24...
asked 14 minutes ago -
A perfect gas undergoes an isentropic process such that its
volume doubles. If the ratio of...
asked 34 minutes ago -
list the elements in groups 3A to 6A in the same order as in the
periodic...
asked 43 minutes ago -
Estimating effect size. Peng and Chen (2014)
evaluated effect size estimates for various tests. In their...
asked 53 minutes ago -
Write a script in MySQL that creates and calls a stored
procedure name test. This procedure...
asked 54 minutes ago -
If we test the following: H0: μ = 17
vs. H1: μ ≠ 17 and the...
asked 1 hour ago -
in the past year TVG had revenues of 3 million, cost
of goods sold of $25...
asked 1 hour ago -
4) In a polypeptide, which bond cannot rotate because of its
partial double bond character?
The...
asked 1 hour ago -
Assume that in the short run L = 1,000 and K = 100. 1. What is...
asked 1 hour ago -
At a given temperature, 2.06 atm of H2 and 3.7 atm of Br2 are
mixed and...
asked 1 hour ago -
Sodium reacts with Hydrochloric acid to form sodium chloride and
hydrogen gas. 2Na(s)+ 2 HCl(aq)-> 2...
asked 1 hour ago -
The following circuits (1 & 2) are combined to form a
series-parallel circuit and resulting circuit...
asked 1 hour ago