SELECT SOLUTIONS CH - METU Middle East Technical …选择解决方案的CH -论坛中东技术….docVIP

SELECT SOLUTIONS CH.2 EXERCISE 2-24 (20 MINUTES) Advertising costs: Period cost, fixed Straight-line depreciation: Product cost, fixed, manufacturing overhead Wages of assembly-line personnel: Product cost, variable, direct labor Delivery costs on customer shipments: Period cost, variable Newsprint consumed: Product cost, variable, direct material Plant insurance: Product cost, fixed, manufacturing overhead Glass costs: Product cost, variable, direct material Tire costs: Product cost, variable, direct material Sales commissions: Period cost, variable Wood glue: Product cost, variable, either direct material or manufacturing overhead (i.e., indirect material) depending on how significant the cost is Wages of security guards: Product cost, variable, manufacturing overhead Salary of financial vice-president: Period cost, fixed Exercise 2-25 (10 minutes) The general formula for solving all three cases is as follows: Beginning inventory of finished goods + Cost of goods manufacturedduring period – Ending inventory of finished goods = Cost-of-goods sold expense Exercise 2-25 (continued) Using this formula, we can find the missing amounts as follows: Case I II III Beginning inventory of finished goods $ 21,000 * $ 18,000 $3,500 Add: Cost of goods manufactured 104,750 142,500 159,000 * Subtract: Ending inventory of finished goods 24,500 12,000 10,500 Cost of goods sold $101,250 $148,500 * $152,000 *Amount missing in exercise. Exercise 2-26 (10 minutes) 1. Hours worked 40 Wage rate ( $16 Total compensation $640 2. Classification: Direct labor (36 hours ( $16) $576 Overhead (idle time: 4 hours ( $16) 64 Total compensation $640 Exercise 2-27 (10 minutes) 1. Regular wages (40 hours ( $17) $ 680 Overtime wages (3 hours ( $22) 66 Total compensation $ 746 2. Overtime hours 3 hrs. Overtime premium per hour ($22 ( $17) ( $ 5 Total overtime premium $ 15