Homework Answers
OPTION - ARE EXPENSED IN THE ACCOUNTING PERIOD IN WHICH THE PRODUCTS ARE SOLD.
Inventoriable cost are the costs related to manufacturing cost such as direct material, direct Labor, freight, Overhead, etc. These are are shown as a Part of Inventory in the balance sheet as an asset and later on shown as an expense in the year it is sold. It includes are manufacturing related cost but not the administrative costs. These are not useful in management accounting.
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Inventoriable costs: are expensed in the accounting period in which the products are sold are also...
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...
Inventoriable costs are expensed on the income statement: when direct materials for the product are purchased...
Inventoriable costs are expensed on the income statement: when direct materials for the product are purchased after the products are manufactured when the products are sold not at any particular time, it varies
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?
Provide what constitutes inventoriable costs in the study of management accounting.
Provide what constitutes inventoriable costs in the study of management accounting.
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 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
In absorption costing, the manufacturing costs expensed are greater than the amount expensed in variable costing...
In absorption costing, the manufacturing costs expensed are greater than the amount expensed in variable costing when units produced are less than sold because the units in beginning inventory under absorption costing were assigned a greater cost in the previous accounting period. O True False
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...
2-33 Inventoriable versus period costs. The following items appear as cost of a manufacturing company: A....
2-33 Inventoriable versus period costs. The following items appear as cost of a manufacturing company: A. Depreciation on plant and equipment B. Depreciation on delivery vans C. Insurance on plant and building D. Marketing manager's salary E. Raw materials E Manufacturing overheads G. Electricity bill for the residential quarters H. Production staff wages 1. Identify the following as either an inventoriable product cost or a period cost. 2. Using the following information, compute the cost of goods manufactured: 3. Direct...
Indicate whether each item below is a product cost (inventoriable cost) or a period cost. If...
Indicate whether each item below is a product cost (inventoriable cost) or a period cost. If it’s a product cost say whether it is DM (direct materials), DL (direct labor) or MO (manufacturing overhead, also called indirect manufacturing costs). If it is a period cost, indicate whether it is AE (administrative expense) or SE (selling expense). Also indicate whether it is a fixed cost (FC) or a variable cost (VC). These costs are for a company that makes tires. Cost...
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
In absorption costing, the manufacturing costs expensed are greater than the amount expensed in variable costing when units produced are less than sold because the units in beginning inventory under absorption costing were assigned a greater cost in the previous accounting period. O True False
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...
2-33 Inventoriable versus period costs. The following items appear as cost of a manufacturing company: A. Depreciation on plant and equipment B. Depreciation on delivery vans C. Insurance on plant and building D. Marketing manager's salary E. Raw materials E Manufacturing overheads G. Electricity bill for the residential quarters H. Production staff wages 1. Identify the following as either an inventoriable product cost or a period cost. 2. Using the following information, compute the cost of goods manufactured: 3. Direct...
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