Question
In: Accounting
Which of the following would be included in inventory? Yes or No (a) Raw materials costs...
Which of the following would be included in inventory? Yes or No
(a) Raw materials costs of leather to a manufacturer of leather furniture
(b) The cost of cans of corn held on the shelves of a grocery store
(c) The cost of a truck in the process of being manufactured by an automobile manufacturer
(d) The cost of land being held for development to a property developer
(e) The cost of a van being used as a courtesy vehicle to an automobile service centre
(f) The costs of construction for a home being built for a specific customer to a builder
(g) The cost of soap and paper towels for the washrooms of a restaurant
Solutions
Expert Solution
| Included/Not included in Inventory | Reason: | |
| (a) Raw materials costs of leather to a manufacturer of leather furniture | Included | Cost of raw material is included into raw material inventory. |
| (b) The cost of cans of corn held on the shelves of a grocery store | Included | Cost of finished goods or traded goods is included into inventory. |
| (c) The cost of a truck in the process of being manufactured by an automobile manufacturer | Included | Work in progress inventory are also included in the WIP inventory. |
| (d) The cost of land being held for development to a property developer | Not included | It would not be included because property developer is not going to deal in sale or purchase of land but in sale or purchase of flats or house. |
| (e) The cost of a van being used as a courtesy vehicle to an automobile service centre | Not included | Automobile service center is not dealing in trading of van. |
| (f) The costs of construction for a home being built for a specific customer to a builder | Included | Home is always an inventory for builder irrespective of its made in general or for a specific customer. |
| (g) The cost of soap and paper towels for the washrooms of a restaurant | Not included | Restaurant is not selling soap or paper towels. These are part of Supplies |
ekkarill92 answered 2 years agoRelated Solutions
Which of the following are inventory accounts for a manufacturer? a. raw materials, work in process,...
Which of the following are inventory
accounts for a manufacturer?
a. raw materials, work in
process, and finished goods
b. direct labor, work in
process, and finished goods
c. manufacturing overhead,
raw materials, and direct labor
d. work in process, direct
labor, and manufacturing overhead
49. In a process cost system,
equivalent units of production are the
a. work done on physical
units expressed in fully completed units.
b. units that are
transferred to the next processing department.
c. units...
Using the following information, compute the direct materials used. Raw materials inventory, January 1 $&
Using the following information,
compute the direct materials used.
Raw materials inventory, January
1
$ 20,000
Raw materials inventory, December
31
40,000
Work in process, January
1
18,000
Work in process, December
31
12,000
Finished goods, January
1
40,000
Finished goods, December
31
32,000
Raw materials
purchases
1,400,000
Direct
labor
560,000
Factory
utilities
150,000
Indirect
labor
50,000
Factory
depreciation
400,000
Operating
expenses
420,000
a. $1,460,000.
b. $1,420,000.
c. $1,400,000.
d. $1,380,000.
Why it's D ????
Marcelino Co.'s March 31 inventory of raw materials is $83,000.Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $83,000.
Raw materials purchases in April are $530,000, and factory payroll
cost in April is $385,000. Overhead costs incurred in April are:
indirect materials, $57,000; indirect labor, $24,000; factory rent,
$37,000; factory utilities, $20,000; and factory equipment
depreciation, $61,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $665,000 cash in April.
Costs of the three jobs worked on in April follow.Job 306Job 307Job 308Balances...
Marcelino Co.'s March 31 inventory of raw materials is $83,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $83,000.
Raw materials purchases in April are $530,000, and factory payroll
cost in April is $385,000. Overhead costs incurred in April are:
indirect materials, $57,000; indirect labor, $24,000; factory rent,
$37,000; factory utilities, $20,000; and factory equipment
depreciation, $61,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $665,000 cash in April.
Costs of the three jobs worked on in April follow.
Job 306
Job...
Marcelino Co.'s March 31 inventory of raw materials is $89,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $89,000.
Raw materials purchases in April are $560,000, and factory payroll
cost in April is $376,000. Overhead costs incurred in April are:
indirect materials, $51,000; indirect labor, $21,000; factory rent,
$39,000; factory utilities, $19,000; and factory equipment
depreciation, $57,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $690,000 cash in April.
Costs of the three jobs worked on in April follow.
Job 306
Job...
Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $90,000.
Raw materials purchases in April are $530,000, and factory payroll
cost in April is $381,000. Overhead costs incurred in April are:
indirect materials, $53,000; indirect labor, $21,000; factory rent,
$30,000; factory utilities, $19,000; and factory equipment
depreciation, $56,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $635,000 cash in April.
Costs of the three jobs worked on in April follow.
Job 306
Job...
Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $84,000.
Raw materials purchases in April are $520,000, and factory payroll
cost in April is $367,000. Overhead costs incurred in April are:
indirect materials, $58,000; indirect labor, $30,000; factory rent,
$37,000; factory utilities, $23,000; and factory equipment
depreciation, $55,000. The predetermined overhead rate is 50% of
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Costs of the three jobs worked on in April follow.
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Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are...
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Raw materials purchases in April are $600,000, and factory payroll
cost in April is $366,000. Overhead costs incurred in April are:
indirect materials, $57,000; indirect labor, $25,000; factory rent,
$34,000; factory utilities, $19,000; and factory equipment
depreciation, $58,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $665,000 cash in April.
Costs of the three jobs worked on in April follow
Job 306
Job...
Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are...
Marcelino Co.'s March 31 inventory of raw materials is $81,000.
Raw materials purchases in April are $550,000, and factory payroll
cost in April is $389,000. Overhead costs incurred in April are:
indirect materials, $55,000; indirect labor, $29,000; factory rent,
$36,000; factory utilities, $24,000; and factory equipment
depreciation, $61,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $665,000 cash in April.
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Raw materials purchases in April are $590,000, and factory payroll
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$37,000; factory utilities, $21,000; and factory equipment
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Costs of the three jobs worked on in April follow. Job 306 Job...
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