ADMS 2510 Lecture 2: ch02.pdf
Get access
Related Documents
Related Questions
Classify the following costsincurred in the manufacturing of cookie bars as either (a)Product Cost- Direct Materials, (b)Product Cost- Conversion, or (c) PeriodCost (5 points).
Cost Incurred in Manufacturing of Cookies | Classification | |
a. | Depreciation on Automated Wrapping Machine | |
b. | Cookie Dough | |
c. | Peanut Butter | |
d. | Plant Managerâs Salary of $90,000 | |
e. | Overtime Pay of Production Workers | |
f. | Cost of Air Time for New Radio Advertising | |
g. | Salary of Plant Security Guard | |
h. | Salary of Company Controller | |
i. | Depreciation on Computers in Legal StaffOffice | |
j. | Manufacturing Departmentâs Allocation of CafeteriaCosts |
List the four standards of ethical conduct for managementaccountants. For each standard, give an example thatdemonstrates compliance with that standard.
Which of the following is not an inventoriable cost of amanufacturer?
Sales commissions paid to sales representatives who sell theproducts made by the manufacturer |
Wages paid to assembly-line workers |
Plant depreciation incurred |
Property taxes on plant Exceptional Manufacturing Co. wants to classify costs for theproduct produced at its facility. The company produces only oneproduct at the facility and operates continually. The costcategories are: Product cost Prime cost Conversion cost Period cost The following costs are found in the accounting records: a. Qualitycontrol inspection wages b. Rawmaterial purchases c. Salescommissions d. Factorydepreciation e. Assemblywages Required: Assign each of the above costs to the most appropriate costcategories. Note costs can belong to more than one category. |