Question

1. Name the three inventory accounts for a manufacturing business.

2. Name the three types of costs in a manufacturing business.

3. Name the three types of manufacturing costs in a manufacturing business.

4. What is the difference between period costs and product cost? Explain and give one example of each type.

5. Identify each if the following costs for the manufacturer of televisions.

     M = direct materials

     L = direct labor

     O = manufacturing overhead

     S = selling cost

     A = administrative cost

       1. Salary for the Personnel Director for the company.

                      

___2. Depreciation on the factory building.

       3. Cost of sales commissions.

       4. Insurance on the administration building.

       5. Cost of labor to construct the televisions.

       6. Utilities for the factory building.

       7. Cost of the glass for the screens.            

       8. Cost of promotional displays.

____9. Delivery costs of the televisions sold to customers.

___10. Cost of the wires inside of the televisions.

Answer 1

1.Three inventory accounts for a manufacturing business includes:

Raw materials ,work in process and finished goods

2.Three types of cost in a manufacturing business includes:

material cost ,labor cost and indirect  overhead

3.Three types of manufacturing cost in a manufacturing business:

direct material cost ,direct labor cost and manufacturing overhead.

4.The main difference between product costs and period costs is that product cost are only incurred if products are acquired or produced wheres period costs are associated with the passage of time eg of product cost includes cost of raw material,wages to labor etc..example of period cost includes salary ,rent,audit fees etc..

5.

1.Administrative cost

2.Manufacturing overhead

3.Administrative cost

4.Administrative cost

5.Direct labor

6.Administrative cost

7.Direct material

8.Direct material

9.Selling cost

10.Direct material