Answer:
A) Standard packaging materials: Product - DM
B) Lease payment on administrative headquarter: Period
C) Telephone bills (customer service): Period
D) Property insurance (40% of building is used for S&A): Period
E) Property insurance (60% of building is used for manufacturing): Product MOH
F) Wages and benefits paid to assembly-line workers: Product DL
Explanation:
Period costs are not include in the COGS and are generally included under sales and administrative costs.
Product costs are costs incurred in the production of a good or service.
Answer:
b. $6,404.20
Explanation:
Value of prize = $1.4 million = $1,400,000
Amount to be received in years = 70 years
Interest Rate = 8%
Future value = Present value x ( 1 + interest rate )^-number of years
FV = PV x ( 1 + r )^n
1,400,000 = PV ( 1 + 0.08 )^70
1,400,000 = PV ( 1.08 )^70
1,400,000 / ( 1.08 )^70 = PV
PV = $6404.20
So The present value of the winning is $6,404.20.
