Distinguish between inventoriable costs and period costs.
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What are three common features of cost accounting and cost management?
Flow of Inventoriable costs. Renka's Heaters selected data for 0 ctober 2017 are presented here (in millions): Direct materials inventory \(10 / 1 / 2017\) \(\quad\) \(\$ 105\) Direct materials purchased \(\quad\) 365 Direct materials used \(\quad\) 385 Total manufacturing overhead costs \(\quad\) 450 Variable manufacturing overhead costs \(\quad\) 265 Total manufacturing costs incurred during 0ctober 2017 \(\quad\) 1,610 Finished-goods inventory \(10 / 1 / 2017\) \(\quad\) 130 cost of goods sold \(\quad\) 1,770 Calculate the following costs: 1\. Direct materials inventory \(10 / 31 / 2017\) 2\. Fixed manufacturing overhead costs for October 2017 3\. Direct manufacturing labor costs for October 2017 4\. Work-in-process inventory \(10 / 31 / 2017\) 5\. cost of finished goods available for sale in October 2017 6\. Finished goods inventory \(10 / 31 / 2017\)
What are three different types of inventory that manufacturing companies hold?
Total and unit cost, decision making. Gayle's Glassworks makes glass flanges for scientific use. Materials cost \(\$ 1\) per flange, and the glass blowers are paid a wage rate of \(\$ 28\) per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are \(\$ 28,000\) per period. Period (nonmanufacturing) costs associated with flanges are \(\$ 10,000\) per period and are fixed. 1\. Graph the fixed, variable, and total manufacturing cost for flanges, using units (number of flanges) on the \(x\) -axis. 2\. Assume Gayle's Glassworks manufactures and sells 5,000 flanges this period. Its competitor, Flora's Flasks, sells flanges for \(\$ 10\) each. Can Gayle sell below Flora's price and still make a profit on the flanges? 3\. How would your answer to requirement 2 differ if Gayle's Glassworks made and sold 10,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making?
Define variable cost and fixed cost. Give an example of each.
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