Professional Documents
Culture Documents
Week 1 - Answer Set
Week 1 - Answer Set
Cost
1. Annual fee for licensing the school logo
2. Cost of stores’ manager salary
3. Cost of t-shirt purchased for sale to customer
4. Subscription to College Apparel Trends magazine
5. Leasing of computer software used for financial budgeting at the store
6. Cost of coffee provided free to all customers
7. Cost of cleaning the store every night after closing
8. Freight-in costs of t-shirt purchased by ECS
D/I V/F
D F
I F
D V
D F
I F
I V
I F
D V
Cost Object = number of recliners assembled
Cost variability = With respect to the changes in number of recliners
assembled
Cost D/I
1. Cost of fabric used on recliners D
2. Salary for public relations managers for Depok Furniture I
3. Annual convention for furniture manufacturers; generally Depok
Furniture attends I
4. Cost of lubricants used on the recliner assembly line D
5. Freight cost of recliner frames shipped from Medan to Depok D
6. Electricity cost for recliner assembly line (single bill covers entire
plant) I
7. Wages paid to temporary assembly line workers hired in periods
of high recliner production (paid on hourly basis) D
8. Annual fire-insurance policy for the whole plant I
9. Wages paid to plant manager who oversees the assembly lines
for both chair I
V/F
V
F
F
F
V
V
F
F
A) Manufacturing Companies
Merchandising Companies
Service Companies
B) Inventoriable Cost
Period Cost
C) Cost
1. Cost of plumber and plumbing supplies available for
sale at Ace Hardware
2. Electricity used to provide lighting for assembly-line
workers at Samsung manufacturing plant
3. Mileage paid to nannies travelling to clients for Rent a
Nanny
4. Wages for personnel responsible for quality testing of
the Samsung products during the assembly process
5. Salaries for Rent a Nanny marketing personnel
6. Lunches provided to the nannies for Rent a Nanny
7. Salaries of employees at Samsung retail stores
8. Shipping costs for Samsung to transport products to
retail stores
purchase materials and convert them into
various finished goods, for example automotive
and textile companies.
I/P
I
P
P
P
P
Income Statement
Urban Corporation
Income Statement
For the Year Ended 31 December 2020
Revenues
COGS:
Beginning FG Inventory, Jan 1 2020 70
Cost of Goods Manufactured 645
Cost of Goods Available for Sale 715
Ending Finished Goods Inventory 55
COGS
Gross Margin
Operating Costs:
Marketing, distribution, and customer
service cost
Operating Income
Urban Corporation
Schedule of Cost of Goods Manufactured
For the Year Ended 31 December 2020
Direct Materials
Beginning Inventory, January 1 2020 15
Purchases of Direct Materials 325
Cost of Direct Materials Available for Use 340
Ending Inventory, December 31 2020 20
Direct Materials Used
660
290
240
50
320
100
220
640
10
650
5
645