Question: Use the Home Depot 2009 financial statements in Appendix A
Use the Home Depot 2009 financial statements in Appendix A at the end of this textbook. Read note 1 to the financial statements that summarizes significant accounting policies for Home Depot. Read the section titled “Cost of Sales” on page A-9. Explain how Home Depot classifies some transportation, shipping, and handling costs as period expenses and others as product costs. On what basis does it distinguish between shipping or transportation costs that are period expenses and those that are product costs?
Answer to relevant QuestionsAqua-Marine manufactures fiberglass fishing boats. The manufacturing costs incurred during its first year of operations are shown as follows:Direct materials purchased . . . . . . . . . . . . . . . . . . . $225,000Direct ...The following are data regarding last year’s production of Dicer Ricer, one of the major products of Kitchen Gadget Company:Purchases of direct materials . . . . . . . . . . . . . . . . . . . . . . $332,000Direct ...The balances in the perpetual inventory accounts of Valleyview Manufacturing Corporation at the beginning and end of the current year are as follows:Total dollar amounts debited and credited during the year to the accounts ...What factors should be taken into account in deciding whether to use job order costing in any given manufacturing situation?Indicate whether job order costing is appropriate for each of the following businesses. Explain why.a. Old Home Bakery, Inc. (a bakery that produces to order). b. Baxter, Claxter, and Stone, CPAs. c. Thompson Construction ...
Post your question