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coldgirl [10]
3 years ago
9

Given below is a list of costs associated with making a pair of Nike shoes. Some of these costs would be classified as product c

osts and some as period costs. Use the schedule below to indicate which costs would be product and which would be period. Production Materials $ 9.00/ Factory rent 1.00/ Factory machine maintenance 0.60/ Administrative costs 0.75 /Factory utilities 0.40/ Production labor 2.75/ Duties on shipments out 3.00 /Factory maintenance workers 0.70 /Shipping costs for materials 0.50/ Labor supervision 0.30 Total $19.00.
Business
1 answer:
KengaRu [80]3 years ago
4 0

Answer:

Product Costs

Product costs are those that are incurred due to the production process. This will therefore include costs related to Direct labor, direct materials and factory overheads.

They include:

  • Production Materials
  • Factory rent
  • Factory machine maintenance
  • Factory utilities
  • Production labor
  • Factory maintenance workers
  • Shipping costs for materials
  • Labor supervision

Their total is therefore:

= 9 + 1 + 0.6 + 0.4 + 2.75 + 0.7 + 0.50 + 0.30

= $15.25

Period Costs

Period costs are those costs that aren't related to production but are incurred in a given period:

They include:

  • Administrative costs
  • Duties on shipments out

Total is:

= 0.75 + 3.00

= $3.75

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.

Explanation:

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3 years ago
Search... Unlock all answers JOIN FOR FREE jswagballerlife4060 01/08/2020 Business College answered LO 5.3Direct material costs
Tomtit [17]

Answer:

$130,000

Explanation:

Calculation to determine the value of the inventory transferred to the next department

First step is to calculate the Cost per unit

Using this formula

Cost per unit = Direct material costs + Direct labor costs + Overhead

Let plug in the formula

Cost per unit=$3+$5+(100%*$5)

Cost per unit = $3 + $5 + $5

Cost per unit = $13

Second step is to calculate the inventory transferred using this formula

Inventory transferred = Beginning inventory + Started Inventory - Ending inventory .

Let plug in the formula

Inventory transferred = 2,000 + 9,000 - 1,000

Inventory transferred = 10,000 units

Now let calculate the value of the inventory transferred

Using this formula

Value of inventory transferred = Inventory transferred × Cost per unit

Let plug in the formula

Value of inventory transferred = 10000 × $13

Value of inventory transferred = $130,000

Therefore the value of the inventory transferred to the next department is $130,000

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Answer:

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