Yang Corporation recently computed total product costs of $567,000 and total period costs of $420,000, excluding $35,000 of sales commissions that were overlooked by the company's administrative assistant. On the basis of this information, Yang's income statement should reveal operating expenses of:

Select one:

a. $35,000

b. $420,000

c. $455,000

d. $567,000

e. $602,000

Question 32

The accounting records of Georgia Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000. Georgia's product costs total:

Select one:

a. $1,050,000

b. $830,000

c. $895,000.

d. $1,270,000.

e. some other amount

Question 33

Which of the following employees of a commercial printer/publisher would be classified as direct labor?

Select one:

a. Book binder

b. Plant security guard

c. Sales representative

d. Plant supervisor

e. Payroll supervisor

Question 34

The accounting records of Diego Company revealed the following costs, among others: Costs that would be considered in the calculation of manufacturing overhead total:

Select one:

a. $149,000

b. $171,000

c. $186,000

d. $442,000

e. some other amount

Question 35

Product costs are:

Select one:

a. expensed when incurred

b. inventoried

c. treated in the same manner as period costs

d. treated in the same manner as advertising costs

e. subtracted from cost of goods sold

Which of the following is a product cost?

Select one:

a. Glass in an automobile

b. Advertising

c. The salary of the vice president-finance

d. Rent on a factory

e. Both "A" and "D"