State and classify the items as per Theory of constraints: 1.Depreciation of a machinery 2.Rental utilities 3.R & D costs 4.Equipment & buildings-costs 5.Raw materials in stock 6.Sales of the product 7.Inventory-Finished goods

State and classify the items as per Theory of constraints: 1.Depreciation of a machinery 2.Rental utilities 3.R & D costs 4.Equipment & buildings-costs 5.Raw materials in stock 6.Sales of the product 7.Inventory-Finished goods

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Identify which of the following transactions andevents are product costs and which are period…

A: The costs which can directly be attributed to a product is known as Product costs. The costs which…

Q: 2. A manufacturing company reports cost of goods manufactured as an) a current asset on the balance…

A: Manufacturing company is that company which is engaged in manufacturing of products. For example,…

Q: Carriage inward on purchase of raw material is classified as? a. Selling overheads b. Direct…

A: Carriage inward cost on purchase of direct material is added to the cost of direct material.

Q: Which of the following costs is not capitalized as inventory? a. costs of delivering finished goods

A: Solution: "Costs of delivering finished goods" is not capitalized as inventory.

Q: ts caused by work delays d. Materials-handling costs e. Materials-procurement and inspection…

A: Given: The data is given as below,

Q: Which of the following costs is a direct cost for a manufactured product? A) Depreciation Expense…

A: The direct cost is expense that can be directly traceable to specific product.

Q: Which of the following is part of factory overhead cost? a.depreciation of sales person's vehicle…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: Describe the flow of costs through a product costing system for inventory valuation purposes (i.e.,…

A: SOLUTION- A company uses a costing system for various purposes.

Q: Instruction: Identify the following: 1. The amount which represents cost incurred to produce goods…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: What would be the classification of depreciation of office building as to (1) variability, (2)…

A: Fixed costs: Fixed costs are those costs that do not change with the production process or with the…

Q: Which of the following accounts would be a period cost rather than a product cost? Freight out.…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product

Q: assify each of the costs as either a product or period cost. Then, classify each of the product…

A: Product cost is included within the inventory valuation, that is simply opposite in the case of…

Q: Identify each of the following costs as either a product cost or a period cost. Factory maintenance…

A: Period costs: These costs are not related to inventory, hence, they are not added to inventory…

Q: Which of the following costs would be considered a period rather than a product cost in a…

A: The product costs are the costs that are directly or indirectly related to the production process.…

Q: 1. Debit to an asset account called Equipment Delivery 2. Recorded as Freight In

A: Determine the fuel and maintenance expenses, yearly depreciation, registration, and any other…

Q: inventory computed.? a) Cost of materials used in production during the period/ Average materials…

A: Inventory refers to the goods and services of the business which the company holds for a motive of…

Q: Which of the following cost includes determining how much to order, cost of invoices, clerical labor…

A: Sunk cost refers to money that has already been spent and which can not be recovered. Sunk costs are…

Q: Indicate whether each of the following should be considered a product cost or a period cost. If you…

A: Direct product cost is the cost incurred to manufacture a product that can be directly…

Q: The following are classified under period costs, except: * 1 point a. Depreciation of…

Q: QUESTION 11 Indicate whether each of the following costs incurred by a manufacture would be…

A: The product costs are the costs that are directly or indirectly related to production process, such…

Q: The ending inventories for materials, work in process, and finished goods are reported on the…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. Deduction…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…

Q: Which of the following costs may be classified as non-manufacturing costs? į Fuel costs of the…

A: Non manufacturing costs are the costs that are not related to manufacturing. The following costs may…

Q: Conversion costs include all of the following except:A. wages of production workersB. depreciation…

A: Conversion costs is an important concept in cost accounting. It means costs incurred for converting…

Q: Direct labor and direct materials are a. period costs and expensed when the goods are sold b.…

A: The different costs related to productions and selling are classified as product and period cost…

Q: Cost of goods sold in a manufacturing company is computed as follows; A. Opening finished goods…

A: Cost of goods sold (COGS) refers to the cost including the costs which are directly related to the…

Q: Select and "X" in the column that corresponds to the cost classification for each of the following…

A: Sunk cost: In accounting and business, a sunk cost is a cost that has already been incurred and that…

Q: If a company incurred a significant repairs and maintenance expense for a plant equipment ( used in…

A: Repairs and Maintenance Expense: The cost that is paid to guarantee that an asset continues to…

Q: Depreciation of a factory equipment is treated as ____, while deprecation of an automobile used for…

A: Manufacturing overhead is the indirect cost that is spent in the manufacturing process. Examples of…

Q: On the costs of goods manufactured schedule, depreciation on factory equipment. is not listed…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Determine whether each of the following costs should be classified as product costs or period costs.…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: The object of the manufacturing account it ? reached to cost of goods sold. prime cost. cost of raw…

A: The manufacturing account represents the accumulated cost of goods manufactured in the production…

Q: Which of the following is a part of Prime Cost? a. Direct Labour b. Indirect Wages c. Rent of…

A: Prime cost includes all the direct costs such as direct material, direct labor, and direct expenses.…

Q: The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs…

A: As per IFRS on Inventory valuation The following are not included in Cost of inventory…

Q: Which of the cost below is not classified as fixed cost? a) Depreciation of machine b)…

A: Fixed cost is the cost which remains fixed irrespective of actual production .

Q: Which of the following costs is NOT capitalized as inventory? a. Rent on Head Office building…

A: The IFRS applicable for Inventory is stating that "The cost of inventories includes all costs of…

Q: What would be the classification of depreciation of office building as to (1) variability, (2)…

A: Variable Cost : Cost which changes with change in production. It increase with increase in…

Q: The entry to record the cost of raw materials placed in production is: a. Dr Work-In-Process;…

Q: During the production process, company incurred normal spoilage and abnormal loss. Such losses are…

A: Normal loss are those losses which is unavoidable therefore included in the cost of good units in…

Q: Which of the following represents the cost of materials purchased but not yet issued to production?…

A: Introduction: Finished goods : After completion of all the stages of manufacturing the product…

Q: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production…

Q: Indicate whether each of the following should be considered a product cost or a period cost. I you…

A: Direct costs: Costs which are directly traceable to the product called direct cost. Example : Direct…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

100%

State and classify the items as per Theory of constraints:

1.Depreciation of a machinery

2.Rental utilities

3.R & D costs

4.Equipment & buildings-costs

5.Raw materials in stock

6.Sales of the product

7.Inventory-Finished goods

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Research and development costs are classified as: O a. Inventoriable costs. O b. Product costs. O c. Period costs. O d. Cost of goods sold.
Which of the following income is considered while preparing cost sheet? O a. Interest received O b. Sale proceeds of factory scrap C.Discount received O d. Dividend received
41) The cost of interest, insurance, taxes, depreciation, breakage, warehousing, opportunity costs etc. is known as ___________. a. Costs of materials b. Costs of disposing materials c. Costs of ordering materials d. Costs of carrying inventory
Which one of the following accounts is an asset similar to work-in-process inventory? Group of answer choices Construction in Progress Cost of Construction Billings in Excess of Cost Revenue from Long-Term Contracts
Product costs … a. are costs that are included in the determining the value of the inventory. b. are all of these. c. prime costs d. include direct materials, direct labor, and overhead e. are manufacturing costs.
Prepare Cost of goods manufactured , Income statements separetely.
The ending inventories for materials, work in process, and finished goods are reported on the a.balance sheet. b.statement of cash flows. c.cost of production report. d.income statement.
Describe the flow of costs through a product costing system for inventory valuation purposes (i.e., excluding non-manufacturing overhead costs). Address the following in your answer:Classification of product costs as an asset and then as an expense. o Make reference to the definition of an asset in the 2018 New Zealand Conceptual Framework oDescribe assets and expenses from a management accounting perspective.
Compute the following1. Prime cost2.Coversion Cost3. Cost of goods manufactured
Describe the flow of costs through a product costing system for inventory valuation purposes (i.e., excluding non-manufacturing overhead costs). Address the following in your answer:The three types of inventory accounts and the three components of product costs.Classification of product costs as an asset and then as an expense. o Make reference to the definition of an asset in the 2018 New Zealand Conceptual Framework oDescribe assets and expenses from a management accounting perspective.
Which one of the following is not a carrying cost? Select one: A. Stores staffing, equipment, maintenance, and running costs B. Storage charges (rent, lighting, heating, etc.) C. Transportation costs D. Material handling costs
2. A manufacturing company reports cost of goods manufactured as an) a. current asset on the balance sheet. b. administrative expense on the income statement. e. component in the caleulation of cost of goods sold on the income statement. d. component of the raw materials inventory on the balance sheet.