Costs and Direct Labor
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Page 1 1. Indirect labor is a part of:
B. Conversion cost. Labor that cannot be physically traced to particular product is treated as indirect labor and as manufacturing overhead. Conversion cost is the sum of direct labor and manufacturing overhead. These costs are incurred to convert materials into the finished product. Indirect labor is treated as part of manufacturing overhead.
2. Prime cost and conversion cost share what common element of total cost?
B. Direct labor. Prime cost is the sum of direct materials and direct labor, likewise Conversion cost is the sum of direct labor and manufacturing overhead.
3. On the Schedule of Cost of Goods manufactured, the final Cost of Goods Manufactured figure represents: A. The amount of cost charged to work in process during the period. When goods are completed, their costs are transferred from work in process to finished goods. The amount transferred from work in process to finished goods is referred to as the cost of goods manufactured.
4. Which of the following would most likely be included as part of manufacturing overhead in the production of wooden table? A. The amount paid to the individual who stains the table. Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. Manufacturing overhead includes items such as indirect materials; indirect labor; etc. But these costs are not included as part of manufacturing overhead. Only those costs associated with operating the factory are included in manufacturing overhead.
The commission paid to the salesperson who sold the table is included in the selling costs. Selling cost and administrative cost
Page 1 1. Indirect labor is a part of:
B. Conversion cost. Labor that cannot be physically traced to particular product is treated as indirect labor and as manufacturing overhead. Conversion cost is the sum of direct labor and manufacturing overhead. These costs are incurred to convert materials into the finished product. Indirect labor is treated as part of manufacturing overhead.
2. Prime cost and conversion cost share what common element of total cost?
B. Direct labor. Prime cost is the sum of direct materials and direct labor, likewise Conversion cost is the sum of direct labor and manufacturing overhead.
3. On the Schedule of Cost of Goods manufactured, the final Cost of Goods Manufactured figure represents: A. The amount of cost charged to work in process during the period. When goods are completed, their costs are transferred from work in process to finished goods. The amount transferred from work in process to finished goods is referred to as the cost of goods manufactured.
4. Which of the following would most likely be included as part of manufacturing overhead in the production of wooden table? A. The amount paid to the individual who stains the table. Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. Manufacturing overhead includes items such as indirect materials; indirect labor; etc. But these costs are not included as part of manufacturing overhead. Only those costs associated with operating the factory are included in manufacturing overhead.
The commission paid to the salesperson who sold the table is included in the selling costs. Selling cost and administrative cost