Question

32-When determining the cost of a manufactured​ product, a factory​ janitor's wages would be classified as

A.a direct cost.

B.an indirect cost.

C.a period cost.

D.a conversion cost.

33-Olde Tyme Beverage​ Company's operating activities for the year are listed below.

Purchases	​$132,000
Operating expenses	​80,000
Beginning Inventory	​12,000
Ending inventory	​16,000
Sales revenue	​275,000

What is the cost of goods sold for the year at the Olde Tyme Beverage​ Company?

A.​$128,000

B.​$144,000

C.​$132,000

D.​$63,000

-Just the correct answers (Letters), without any explanation at all, many thanks
-Please just answer if you're sure about the answers

Answer 1

QUESTION :[32] WHEN DETERMINING THE COST OF MANUFACTURED PRDUCT , A FACTORY JANITOR'S WAGES WOULD BE CLASSIFIED AS ?

ANS : [B] An indirect cost

A janitor is a person who cleans and maintains buildings such as, hospitals, schools etc., Their primary responsibility is as a cleaner, but this is not associated with any production process of products. That's why janitor's pay is considered as an indirect labour cost.

QUESTION : [33] CALCULATION OF COST OF GOODS SOLD

ANS : [A] $1,28,000

inventory at the beinning = $12,000

[add] purchases = $1,32,000

cost of goods sold available for sale = $1,44,000

[less] inventory at the end =[ $16,000 ]

cost of goods sold = $1,28,000