Product costs are: Select one: O a. treated as an asset and depreciated. b. inventoried until...
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Product costs are: Select one: O a. treated as an asset and depreciated. b. inventoried until the units are sold. + c. expensed on the income statement when incurred. O d. considered current liabilities until paid. Muscat Company's total sales are $130,000. The company's direct material cost is $41,000, which represents 40% of its total prime cost. Its total manufacturing overhead costs is $45,000. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 3% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. What is the total manufacturing cost? Select one: O a. None of the answers given O b. $104,000 O c. $102,400 O d. $89,000 Oe. $157,500 f. $147,500 Product costs are: Select one: O a. treated as an asset and depreciated. b. inventoried until the units are sold. + c. expensed on the income statement when incurred. O d. considered current liabilities until paid. Muscat Company's total sales are $130,000. The company's direct material cost is $41,000, which represents 40% of its total prime cost. Its total manufacturing overhead costs is $45,000. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 3% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. What is the total manufacturing cost? Select one: O a. None of the answers given O b. $104,000 O c. $102,400 O d. $89,000 Oe. $157,500 f. $147,500
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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