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12) Which of the following is mra product cost? A) The real estate tax of the sh

ID: 2599673 • Letter: 1

Question

12) Which of the following is mra product cost? A) The real estate tax of the showroom. B) Depreciation C) The leather seats of a motoreycle D) An employee working directly on assembling a car on a warchouse where raw materials are stored Helpful Tool Company 13) The following information is available about the August transactions of the l $493.000 $737,000 lavoices for product costs paid during the month . Product costs charged to Work in Process. Cost of finished goods manufactured Cost of goods sold. $718,000 $739.000 The product costs to be deducted from revenue in August amount to: B) $493,00o. C) S718.000o. D) $737.000. A) $739,000 14) Manufacturing companies normally have three types of inventory: A) Direct materials, direct labor, and manufacturing overhead. B) Work in process, finished goods, and returned merchandise. C) Raw materials, work in process, and finished goods. D) Economy, standard, and deluxe. 15) Determine the amount of manufacturing overhead given the following information: $2.600 $950 $1.050 $5.200 $1.000 $880 Depreciation on a factory building Telephone expense in factory office Telephone expense in sales showroom Factory foreman 's salary Maintenance costs for the factory Maintenance costs for the sales showroom A) $11,080. B) $7,750. C) $9,750. D) $10,430 Canfield Construction applies overhead to its projects at a rate of $65 per direct labor hour. Laborers are pa average rate of S30 per hour. The Jefferson Apartments project was charged a total of $1.200,000 in direct materials and $450,000 in direct labor costs. 16) Refer to the information above. Overhead applied to the Jefferson Apartments project amounte A) S975,000 C)S650,000. B) $450,000. D) Some other amount A-3

Explanation / Answer

12.which of the following is not a product cost?

A. the real estate tax of the showroom - This is a period cost

13. Cost of goods sold totalling $739,000 is the product to be deducted from revenue in August

14. C. Raw Material , work in process and finished goods

15.Manufacturing Overhead :

Depreciation on factory building + Telephone expense in factory office + Factory foremen's salary + Maintainence cost for the factory

$2,600 + $950 + $5,200 + $1,000 = $9,750

16.Canfield Construction applies overhead to its projects at a rate of $65 per direct labor hour. Laborers are paid an average rate of $30 per hour.

Direct labor Cost / Labour rate per hours = Labour hous x Overhead rate

$450,000/30 = 15,000 hours x $65 = $975,000