Product cost Accounting help
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acc_app_19_q.docxPlace a check mark in the appropriate column to identify whether each of the following costs is a product cost or a period cost. If it is a product cost, further classify it in the last column as direct materials (DM), direct labor (DL) or manufacturing overhead (MO).
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Product Cost |
Period Cost |
DM, DL, MO |
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a. |
Cost of supervisory personnel in the factory |
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b. |
Direct materials used |
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c. |
Salary of the company president |
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d. |
Cost of the corporate accounting department |
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e. |
Indirect materials used |
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f. |
Costs incurred to run the company’s credit department |
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g. |
Salary of the production superintendent |
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h. |
Property taxes for land upon which the factory is located |
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i. |
Deprecation on the office machines used in the advertising department |
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j. |
Materials used in the production process that do not become part of the finished product |
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Cost of Goods Manufactured Statement
ABC Co. is a large manufacturer of electronic game components. At year-end 2015, the following information is obtained from the worksheet. All information is shown in thousands (000s).
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Factory supplies |
$ 3 |
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Rent on machinery |
40 |
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Indirect labor |
120 |
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Beginning Raw Materials Inventory |
500 |
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Ending Raw Materials Inventory |
850 |
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Direct Labor |
1,100 |
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Insurance on factory buildings |
50 |
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Beginning Work in Process |
700 |
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Ending Work in Process |
400 |
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Property taxes on factory |
200 |
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Advertising expense |
175 |
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Purchases of raw materials |
900 |
REQUIRED: Prepare in good form, a Cost of Goods Manufactured Statement
