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Author Question: Exceptional Manufacturing Co. wants to classify costs for the product produced at its facility. The ... (Read 84 times)

brutforce

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on: Mar 6, 2021

Question 1

Since costs that are inventoried are not expensed until the units associated with them are sold, a manager can produce more units than are expected to be sold in a period without reducing a firm's net income.
◦ true
◦ false

Question 2

Exceptional Manufacturing Co. wants to classify costs for the product produced at its facility. The company produces only one product at the facility and operates continually.  The cost categories are:

 Product cost
 Prime cost
 Conversion cost
 Period cost

The following costs are found in the accounting records:

a.Quality control inspection wages
b.Raw material purchases
c.Sales commissions
d.Factory depreciation
e.Assembly wages

Required: 
Assign each of the above costs to the most appropriate cost categories.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by brutforce on Mar 6, 2021

juicepod

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Reply #1 on: Mar 6, 2021
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brutforce

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Reply 2 on: Mar 6, 2021
Excellent

Jsherida

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Reply 3 on: Yesterday
Gracias!

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