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What else can I help you with?
Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
What costs are inventoriable under GAAP for service organisation merchandising businesses and manufacturing businesses?
service - none merchandising - freight costs, closing inventory manufacturing - direct material, direct labor, freight cost, manufacturing overhead
Is the cost of direct materials classified as a conversion cost?
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Is direct material cost an overhead?
no direct cost is not an overhead
What is conversion cost pricing?
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
Manufacturing overhead is 20 direct labor is 45000 and direct materials are 53000 what is the manufacturing overhead?
20
Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
What costs are inventoriable under GAAP for service organisation merchandising businesses and manufacturing businesses?
service - none merchandising - freight costs, closing inventory manufacturing - direct material, direct labor, freight cost, manufacturing overhead
Direct materials plus direct labor plus variable overhead equals?
Total Manufacturing Cost
Briefly explain the 3 basic elements of costs?
The three basic elements of costs are direct materials, direct labor, and overhead. Direct materials refer to the supplies used in production, direct labor refers to the cost of labor directly involved in production, and overhead encompasses all other production costs not directly tied to materials or labor.
Is Freight out Cost of goods sold or selling exp?
Freight out is typically classified as a selling expense. It includes the cost of shipping goods to customers and is directly related to the sales process. Cost of goods sold, on the other hand, includes the direct production costs of goods sold, such as materials, labor, and overhead expenses.
Is the cost of direct materials classified as a conversion cost?
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Prime cost and conversion cost?
Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
Is direct material cost an overhead?
no direct cost is not an overhead
Assuming that direct labor is a variable cost product costs under variable costing include only?
B. Direct materials, direct labor, and variable manufacturing overhead.
What is conversion cost pricing?
Pricing is based on direct labor and overhead. Materials does not affect pricing. Example: Your customer provides materials used in production.
Abbey Company's manufacturing overhead is 60 percent of its total conversion costs If direct labor is 35000 and if direct materials are 55000 the manufacturing overhead is?
Conversion Cost (CC) = Direct Labour (DL) + Manufacturing Overhead (MO) CC = 35000 + (35000/40)*60 Therefor, M0 = (35000/40)*60 = 52500
