Chapter 2 Demonstration Problem

Chapter 2 Demonstration Problem - Demonstration of...

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Demonstration of categorizing costs into cost behavior categories and product or period costs Development of a Cost of Goods Manufacturing Statement(COGM) and Income Statement (IS) DATA Advertising $50,000 Direct Labor-factory 150,000 Factory Supervision 60,000 Property taxes, factory 5,000 Sales Commissions 15,000 Insurance, Factory 3,000 Depreciation, office equipment 6,000 Depreciation, factory equipment 9,000 Rent expense on the factory 50,000 Office supplies-administration 4,000 Administrative salaries 75,000 Raw Materials purchased 90,000 Utilities - factory 24,000 Beginning Ending Raw materials inventory $0 $0 Work in process inventory 50,000 60,000 Finished goods inventory 30,000 40,000 Part 1: Objective: Identify cost behavior and categorize as a product or period cost. Table Top Inc. manufactures tables. Below is the annual cost data for the year ended December 31, 20XX. Cost behavior will be determined based on the number of units sold or produced. Cost Behavior
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Chapter 2 Demonstration Problem - Demonstration of...

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