Support departments costs are related to production O indirectly. O as part of direct material costs. O as part of direct labor costs. O as part of both direct labor and direct material costs.
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Support departments provide services to other departments within a company, rather than directly producing goods or services. Show more…
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Department J had no work in process at the beginning of the period. 18,000 units were completed during the period. 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period (Assuming the company uses FIFO): Direct materials (20,000 at P4) P80,000. Direct labor P102,300. Factory overhead P37,200. Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period? a. P4,500 b. P23,000 c. P6,900 d. P12,500. Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during the period? a. P139,500 b. P219,500 c. P80,000 d. P207,000.
Adi S.
LO 2.2 This list contains costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH). Classify each of these items as direct materials, direct labor, or overhead. 1. Glue used to attach labels to bottles containing a patented medicine. 2. Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments. 3. Insurance on a factory building and equipment. 4. A production department supervisor’s salary. 5. Rent on factory machinery. 6. Iron ore in a steel mill. 7. Oil, gasoline, and grease for forklift trucks in a manufacturing company’s warehouse. 8. Services of painters in building construction. 9. Cutting oils used in machining operations. 10. Cost of paper towels in a factory employees’ washroom. 11. Payroll taxes and fringe benefits related to direct labor. 12. The plant electricians’ salaries. 13. Crude oil to an oil refinery. 14. Copy editor’s salary in a book publishing company. Assume your classifications could be challenged in a court case. Indicate to your attorneys which of your answers for part a might be successfully disputed by the opposing attorneys and why. In which answers are you completely confident?
Supreeta N.
22. Manufacturing overhead costs in an automobile manufacturing plant MOST likely include: labor costs of the painting department sales commissions steering wheel costs indirect material costs such as lubricants
Sanchit J.
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Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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