Which of the following is NOT an inventoriable cost at Big BobâsAutomotive Production Plant?
A. Steel used to make the cars.
B. Salary paid to the plant supervisor Sal who oversees theproduction of cars.
C. Wages paid to the assembly line workers who help make thecars.
D. Depreciation on the office building where the accounting for BigBobâs Automotive Production Plant is done.
Which of the following is NOT an inventoriable cost at Big BobâsAutomotive Production Plant?
| A. | Steel used to make the cars. | |
| B. | Salary paid to the plant supervisor Sal who oversees theproduction of cars. | |
| C. | Wages paid to the assembly line workers who help make thecars. | |
| D. | Depreciation on the office building where the accounting for BigBobâs Automotive Production Plant is done. |
Related questions
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. |
| Happy Feet Running Company manufactures running shoes and has the following costs during the pastâ month: What are the total period costs for Happy Feet Running Company for theâ month? A. 53,175 B.74,725 C.46,250 Data Table: Rubber used to make the product | â$35,000 |
| Gel used to make the product | â15,000 |
| Fabric used to make the product | â25,000 |
| Lubricants used in the factory equipment | â1,300 |
| Glue used to make the product | 850 |
| Wages paid to maintenance workers in the factory | â3,000 |
| Wages paid to assembly line workers | â10,000 |
| Wages paid to factory supervisor | â5,000 |
| Wages paid to CFO | â25,000 |
| Depreciation on factory equipment | â17,250 |
| Depreciation on the accountingâ department's computers | â3,000 |
| Depreciation on the sales force vehicles | â5,000 |
| Utilities for factory | â3,500 |
| Cost of shipping to customers | â6,000 |
| Property tax on factory equipment | â1,000 |
| Property insurance for the factory | â1,200 |
| Cardboard material to box each pair of shoes | â6,250 |
| Commissions paid to sales force | â7,000 |
| Office supplies for accounting department | 250 |
| Janitorial supplies for the factory | 675 |
