What is debt-to-equity ratio (ratio of liabilities to stockholder’s equity)? What are product cost vs. period...

What is debt-to-equity ratio (ratio of liabilities to stockholder’s equity)?

What are product cost vs. period cost?

What is the schedule of cost of goods manufactured?

Expert Solution

1. Debt/Equity (D/E) Ratio, calculated by dividing a company's total liabilities by its stockholders' equity, is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity.

2. Product costs are initially recorded within the inventory asset. ... Examples of product costs are direct materials, direct labor, and allocated factory overhead. Period costs are cost incurred over period of time. Examples of period costs are general and administrative expenses, such as rent, office depreciation, office supplies, and utilities.

3. The cost of goods manufactured schedule is used to calculate thecost of producing products for a period of time. The cost of goods manufactured amount is transferred to the finished goods inventory account during the period and is used in calculating cost of goods soldon the income statement.

ekkarill92 answered 2 years ago

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