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Is insurance on inventory a direct expense?
insurance is an indirect expense.............
When calculating prime cost do you use beginning inventory or ending inventory of direct materials?
Total material consumed amount is used for prime cost not opening inventory or ending inventory only.
Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
What is would be debited to record the requisition of direct materials?
work in process inventory
Should inventory be included in income statement?
Inventory is capitalized on the balance sheet as a current asset. Inventory is increaseed by items purchased (direct materials or finished goods), costs incurred in creating a product (for manufacturers), and an allocation of overhead to the creation of the product. As inventory is sold, the cost of the inventory sold is recorded by reducing inventory (a credit) and increasing Costs of goods sold (a debit).
Is insurance on inventory a direct expense?
insurance is an indirect expense.............
When calculating prime cost do you use beginning inventory or ending inventory of direct materials?
Total material consumed amount is used for prime cost not opening inventory or ending inventory only.
Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
What is would be debited to record the requisition of direct materials?
work in process inventory
Should inventory be included in income statement?
Inventory is capitalized on the balance sheet as a current asset. Inventory is increaseed by items purchased (direct materials or finished goods), costs incurred in creating a product (for manufacturers), and an allocation of overhead to the creation of the product. As inventory is sold, the cost of the inventory sold is recorded by reducing inventory (a credit) and increasing Costs of goods sold (a debit).
How do you calculate the ending direct materials inventory?
Beginning Direct Materials Add: Materials purchased during period Less: Materials Used during period Equals: Ending Direct Materials
Inventory shrinkages and accidents pertain to which component of direct costs associated with mismanaged organizational stress?
Performance on the job
Which department is often responsible for the direct materials price variance?
Receiving can affect direct materials price variances if there is no inventory. The accounting department will mark up prices to reflect a shortage.
How do you calculate beginning work in process inventory?
beginning work in process + requisted for manufacturing ( direct material + direct labor + man. overhead ) = cost of goods completed + ending work in process
How are purchase discounts and purchase returns recorded by a company using the periodic inventory system?
They are recorded as a direct reduction to the Purchases account.
What are the procedures of auditing work in progress?
Procedures of auditing work in progress are listed/ cutoff analysis, observe the physical inventory count, reconcile the inventory count to the general ledger, test high-value items, test error-prone items, test inventory in transit, test item costs, review freight costs, test for lower of cost or market, finished goods cost analysis, direct labor analysis, overhead analysis, work-in-process testing, inventory allowances, inventory ownership, and inventory layers.
How can you contact Contact Lens Direct?
Contacts Direct carries the most popular brands and has an inventory of more than 1 million lenses, providing many options to fulfill the eyecare needs of you and your covered dependents.
