Problem 1. Wages paid to the factory manager are considered an example of;
A. Direct labor-ye, Period cost yes
B. Direct labor yes Period cost yes
C. Direct labor no, period cost-yes
D. Direct labor- no, period cost no
Problem 2. Property taxes on a manufacturing plant are an element of
A. Conversion cost- yes, period cost no
B. Conversion cost- yes, period cost yes
C. Conversion cost=-no, period cost yes
D. Conversion cost-no, period cost-no
Problem 3. The following data (in thousand of dollars have been take from the accounting records of Karman Corporation for the just completed year;
Sales…………………….950.00
Raw materials inventory, beg………………10.00
Raw material ending…………………….30.00
Purchase of raw materials…………………….120.00
Direct labor………………………200.000
Manufacured overhead………………………230.00
Admin. Expenses……………………………………100.00
Selling expenses…………………………..140.00
Work in process, inventory, beginning…………………..70.00
Work in process, inventory, ending………………………….40.00
Finished goods, inventory, beginning……………………..100.00
Finished goods inventory, ending………………………..80.00
a. The cost of goods manufactured (finished) of the year (in thousands dollars) was?
b. The cost of goods sold for the year (in thousands of dollars) was?
Problem 4. Evaluate the following statement: “ The scheduled of cost of goods manufactured and scheduled of cost of goods sold show the flow of product cost in a manufacturing company”.