Identification. Pocket Umbrella, Inc., is considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat pocket or purse. Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, selling expense, or administrative expense. 6. The salary of the supervisor of the people who assembled the product 7. Wages of the product tester who stands in a shower to make sure the umbrellas do not leak 8. Cost of market research survey 9. Salary of the company’s sales managers 10. Depreciation of administrative office building B. Essay. Answer below questions as required. 1. Identify the three elements of cost incurred in manufacturing a product and indicate the distinguishing characteristics of each. 2. What is the general content of a statement of cost of goods manufactured? 3. What is the relationship of the cost of goods manufactured to the income statement? 4. How did you cope up with your studies in this “new normal” conduct of classes?
Identification. Pocket Umbrella, Inc., is considering producing a new type of umbrella. This new
pocket-sized umbrella would fit into a coat pocket or purse. Classify the following costs of this
new product as direct materials, direct labor, manufacturing overhead, selling expense, or
administrative expense.
6. The salary of the supervisor of the people who assembled the product
7. Wages of the product tester who stands in a shower to make sure the umbrellas do not leak
8. Cost of
9. Salary of the company’s sales managers
10. Depreciation of administrative office building
B. Essay. Answer below questions as required.
1. Identify the three elements of cost incurred in manufacturing a product and indicate the
distinguishing characteristics of each.
2. What is the general content of a statement of cost of goods manufactured?
3. What is the relationship of the cost of goods manufactured to the income statement?
4. How did you cope up with your studies in this “new normal” conduct of classes?
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