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Academia Sporting Goods, is a manufacturer or work out apparel for professors who need to get back in shape. Academia incurred the following costs during
Academia Sporting Goods, is a manufacturer or work out apparel for professors who need to get back in shape. Academia incurred the following costs during the year: Cost of raw materials 12,000,000 Direct labor conversion costs 25,000,000 Production overheads 5,000,000 Freight charges of raw materials 2,000,000 Storage costs for finished good 800,000 Abnormal wastage 80,000 Administrative overhead 100,000 Given there is no work in progress inventory at year end: 1) What costs are capitalized to inventory? 2) What costs are expensed to the income statement? O Capitalized 44,100,000 ; Expensed 880,00 O Capitalized 39,000,000 ; Expensed 5,980,000 O Capitalized: 44,000,000 ; Expensed 980,000 o Capitalized 19,000,000 ; Expensed 25,980,000
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