Requirement 1. For a manufacturing company, identify the following as either a product cost or a period cost:

	a.	Depreciation on plant equipment
	b.	Depreciation on salespersons' automobiles
	c.	Insurance on plant building
	d.	Marketing manager's salary

Part 2

	e.	Direct materials used
	f.	Manufacturing overhead
	g.	Electricity bill for human resources office
	h.	Production employee wages

Part 3

Requirement 2. Show how to compute cost of goods manufactured. Use the following amounts: direct materials used,

$28,000;

direct labor,

$11,000;

manufacturing overhead,

$12,000;

beginning Work-in-Process Inventory,

$10,000;

and ending Work-in-Process Inventory,

$1,000.

Cost of Goods Manufactured
Total Manufacturing Costs Incurred during Period
Total Manufacturing Costs to Account For
Cost of Goods Manufactured

Part 4

Requirement 3. Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming

1,200

units were manufactured.

			=	Unit product cost
			=

Part 5

Requirement 4. Beginning Finished Goods Inventory had

175

units that had a unit cost of

$45

each. Ending Finished Goods Inventory has

200

units left. Using the results from Requirement 3, calculate cost of goods sold assuming FIFO inventory costing is used.

+
=
-
=	Cost of Goods Sold

1.

For a manufacturing company, identify the following as either a product cost or a period cost:

a.	Depreciation on plant equipment
b.	Depreciation on salespersons' automobiles
c.	Insurance on plant building
d.	Marketing manager's salary
e.	Direct materials used
f.	Manufacturing overhead
g.	Electricity bill for human resources office
h.	Production employee wages

2.

Show how to compute cost of goods manufactured. Use the following amounts: direct materials used,

$28,000;

direct labor,

$11,000;

manufacturing overhead,

$12,000;

beginning Work-in-Process Inventory,

$10,000;

and ending Work-in-Process Inventory,

$1,000.

3.

Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming

1,200

units were manufactured.

4.

Beginning Finished Goods Inventory had

175

units that had a unit cost of

$45

each. Ending Finished Goods Inventory has

200

units left. Using the results from Requirement 3, calculate cost of goods sold assuming FIFO inventory costing is used.

Answer rating: 100% (QA)

Requirement 1 a Depreciation on plant equipment Product cost b Depreciation on salespersons automobi... View the full answer