$\frac{1}{1}$

$1009$

Chapter $18$ Managerial Accounting Concepts and Principles

$857$

$0.$ Cost of drugs used for patients.

p$.$ Doctor's fee.

$9.$ Cost of $x-$ray test.

r$.$ Overtime incurred in the Records Department due to a computer failure.

$5.$ General maintenance of the hospital.

t$.$ Salary of the nutritionist:

u$.$ Depreciation on patient rooms.

Instructions

What would be Cottonwood's most logical definition for the final cost object?

Identify whether each of the cosis is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the patient as the cost object.

PR $18-4$A Manufacturing income statement, statement of cost of goods manufactured

Several items are omitted from each of the following income statement and cost of goods manufactured statement data for the month of December $2012.$

$\backslash$table$[[,\backslash$table$[[$Tom$],[$Company$]],\backslash$table$[[$Jerry$],[$Company$]]],[$Materials inventory, December I,$51167200,$$ $118,000],[$Materials inventory, December $31,(a),120,000],[$Materials purchased,$475,200,228,000],[$Cost of direct materials used in productio,so$1\mathrm{.}600,($a$)],[$Direct labor,$705600,($b$)],[$Factory overhead,$218,400,120,000],[$Total manufacturing costs incurred during,$($b$),690,000],[$Total manufacturing costs,$1785600,985,000],[$Work in process inventory, December $1,360,000,295,000],[$Work in process inventory, December $31,102400,($c$)],[$Cost of goods manufactured,$(c),683,000],[$Finished goods inventory, December :$,316\mathrm{.}809,136,000],[$Finished goods inventory, December $31,331200,($d$)],[$Sales$,2760,000,1,117,000$