5. The cost of a product includes:
|
a. |
period costs.
|
|
b. |
direct material, direct labor and overhead costs.
|
|
c. |
selling costs, administrative costs, and cost of goods sold.
|
|
d. |
indirect material, indirect labor, and administrative costs.
|
6. Overheard costs may include:
|
|
indirect labor costs.
|
|
|
indirect material costs.
|
|
|
factory supplies that cannot be directly traced to a cost
object.
|
|
|
All of the above.
|
7. Period costs can be described as
|
a. |
Costs reported in the Cost of Goods Sold on the Income
Statement.
|
|
b. |
Costs that vary in total depending on the amount of units
produced.
|
|
c. |
Costs carried in inventory on the balance sheet until a product
is sold.
|
|
d. |
Costs that are expensed in the period of time in which they are
incurred.
|
8. During the month of January, Gonzalez Company had total
manufacturing costs of $121,000. Direct labor costs of $44,000 was
incurred along with $33,000 of manufacturing overhead costs in the
month as well. The direct material beginning inventory on January 1
was $3,300 less than the direct material ending inventory on
January 31.
Question: Calculate the cost of direct materials used during the
month of January.
|
|
$88,000 direct materials used
|
|
|
$44,000 direct materials used
|
|
|
$47,700 direct materials used
|
|
|
$30,700 direct materials used |
