Submitted by: Submitted by Ayushwadhwa
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Words: 544
Pages: 3
Category: Business and Industry
Date Submitted: 03/19/2015 08:36 PM
Seminar Illustration Seminar Illustration
Classification of costs Cl ifi i f
Refer to handout Cost item A. Annual retainer paid to a film distributor B. Electricity costs of crescendo store (single b ll covers entire store) ( l bill ) C. Costs of films purchased for sale to customers D. Leasing of computer software used for financial budgeting at crescendo store E. Cost of popcorn provided free to all customers F. F Earthquake insurance policy for crescendo store G. Freight in costs of movies purchased by crescendo H. Subscription to Video‐Novo magazine D or I I I D I I I D D V or F F V V F V F V F
Schedule of cost of goods manufactured for the year ended 31 December 2011 (in $mil.)
$ Direct materials used Direct materials used 13.05 13 05 Direct manufacturing labour costs 5.10 Indirect manufacturing costs: Property tax on plant building Property tax on plant building 0.45 0 45 Plant utilities 2.55 Depreciation of plant building 1.35 Depreciation of plant equipment Depreciation of plant equipment 1.65 Plant repairs and maintenance 2.40 Indirect manufacturing labour costs 3.45 Indirect materials used 1.65 Miscellaneous plant overhead 0.60 14.10 Manufacturing costs incurred during 2011 32.25 Add opening work in progress stock, 1 Jan. 2011 3.00 Total manufacturing costs to account for 35.25 Deduct closing work in progress stock, 31 Dec. 2011 3.90 Cost of goods manufactured 31.35 $
Schedule of cost of goods sold for the year ended 31 December 2011 (in $mil.)
Opening finished goods, 1 Jan. 2011 Cost of goods manufactured (above) Cost of goods manufactured (above) Cost of goods available for sale Closing finished goods, 31 Dec. 2011 Cost of goods sold g
4.05 31.35 35.40 5.10 30.30
Quiz Quiz
1. Cost objects include
a. b. c. c d. Products Customers Departments All of the above
Quiz
2. Classifying a cost as either direct or indirect l if i i h di i di...