Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs?

 Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs? (Check all that apply.)
Multiple select question.
 
Glass used in the frame
 
Oak wood used for frame
 
Salary of production supervisor
Reason:
This is indirect cost and is classified as factory overhead.
 
Wages of assembly line worker
Reason:
This is direct cost.
Correct Answer
Glass used in the frame
Oak wood used for frame
Wages of assembly line worker

A schedule of cost of goods manufactured has the following main sections: (Check all that apply.)
Multiple select question.
 
Direct materials
 
Indirect labor
 
Cost of goods manufactured
 
Overhead
 
Underhead
 
Indirect materials
 
Direct labor
 
Cost of goods sold
Correct Answer
Direct materials
Cost of goods manufactured
Overhead
Direct labor

 
Major Manufacturing Company has direct materials used of $50,000, beginning raw materials inventory of $10,000 and ending raw materials inventory of $8,000. Compute the raw materials inventory turnover.
Multiple choice question.
 
5.55
 
6.25
Reason:
$50,000 / [(10,000+8,000/2)]=5.55
 
5
Reason:
$50,000 / [(10,000+8,000/2)]=5.55
Correct Answer
5.55

Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines.
Multiple select question.
 
Selling
 
Period
Reason:
Straight-line depreciation is a fixed cost.
 
Direct
Reason:
Depreciation is not a direct cost. It is an indirect cost.
 
Indirect
Correct Answer
Indirect

Digital manufacturing combines _____ to manufacture products. (Check all that apply.)
Multiple select question.
 
human control
 
machines
 
customers
 
computers
Correct Answer
human control
machines
computers


Assume that Speedboat Company has beginning finished goods inventory of $10,000; ending finished goods inventory of $150,000; goods available for sale of $210,000; and cost of goods manufactured of $200,000. What is its cost of goods sold?
 
multiple choice
•     $20,000
•     $50,000
•     $60,000 Correct
•     $370,000
•     $340,000

Answer
 $60,000

 

Thanks