Shelling Company owns $30,000 of manufacturing equipment. The equipment has a 10- year useful life and a $6,000 salvage value. Shelling uses straight-line depreciation During the most recent annual accounting period the company made 1,200 units of product Assuming Shelling sold 1,000 units of product, the amount of depreciation expense that would be included in cost of goods sold is: a zero. b. $3,000 c. $2,500 d. $2,000 Which of the following items is not a product cost? a. Cash paid for wages of production workers. b. Cash paid for salary of production supervisor c. Cash paid for wages of a maintenance crew that cleans the manufacturing facility. d. All of the above are product costs. 7. Consolidated Company makes cardboard boxes. During the most recent accounting period, Consolidated paid $60.000 for raw materials, $48,000 for labor, and $52,000 for overhead costs that were incurred to make boxes Consolidated started and completed 400,000 boxes. GS&A expenses amounted to $40,000. Consolidated desires to earn a gross margin that is equal to 40% of product cost. Based on this information the selling price per box is: a. $0.40 b. $0.56. c. $0.50 d $0.70 8. Which of the following is a characteristic of managerial accounting information? a. It is historically based. b. It involves continuous reporting. C. It is regulated by the SEC. d. It is directed to external users. Focus