emaining Time: 48 minutes, 44 seconds. Question Completion Status uestion I Cost
ID: 2409474 • Letter: E
Question
emaining Time: 48 minutes, 44 seconds. Question Completion Status uestion I Cost of flour incurred by a manufacturing company producing pastry products (the company can easily trace the cost to an individual product) would be classified as: a. Direct Materials dDirect Labor Manufacturing Overhead d.Period Cost Question 2 Cost of yeast costs incurred by a manufacturing company producing pastry products (the company cannot easily trace the cost to an individual product) would be classified as: a Direct Materials b. Direct Labor Manufacturing Overhcad d. Period CostExplanation / Answer
1. a- Direct Material -
Because the flour is the main element in the manufacturing of pastry and without which pastry cant be made.
2. c- Manufacturing Overhead -
Yeast is the key element in making the pastry products so it should be classified as direct material but since it is not traceable to the specific products it will be charged to manufacturing overhead as indirect material.
3. a- Direct Material
The cost of primary packing is included with the cost of direct material and traced to the individual products.
4. d- Period Cost
The cost of selling considered as a period cost and not included in the manufacturing cost.
5. c- Manufacturing Overhead
It is the indirect material used in the production. and will be distributed to products as per allocation rate.
6. c.Manufacturing Cost
The depreciation on the factory is a part of the cost of production and hence included with manufacturing overhead.
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