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The schedule of cost of goods manufactured can become a schedule of cost of goods manufactured and sold by including the beginning and ending finished goods inventory figures in the supporting schedule, rather than directly in the body of the income statement.Req 2. Would the sales manager's salary (included in marketing, distribution, and customer-service costs) be accounted for any differently if the Howell Corporation were a merchandising-sector company instead of a manufacturing-sector company? The sales manager's salary would be charged as a marketing cost for a manufacturing company and as a marketing cost for a merchandising company.Describe how the wages of an assembler in the plant would be accounted for in this manufacturing company.An assembler's wages would be assigned to the products worked on. Thus, the wages cost would be charged to WIP and would not be expensed until the product is sold.
Req 3. Plant supervisory salaries are usually regarded as manufacturing overhead costs. When might some of these costs be regarded as direct manufacturing costs? Give an example.The direct-indirect distinction can be resolved only with respect to a particular cost object. For example, in defense contracting, the cost object may be defined as a single contract. Then, a plant supervisor working only on one contract will have his or her salary charged directly and wholly to that single contractReq 4. Suppose that both the direct materials used and the plant and equipment depreciation are related to the manufacture of 1 millionunits of product. What is the unit cost for the direct materials assigned to those units? The unit cost for the direct materials assigned to those units is $320 per unit.