The Following Selected Costs Were Extracted from the Accounting Records

question 55

Essay

The following selected costs were extracted from the accounting records of Brampton Machining:
1. Direct materials used in production
2. Wages of machine operators
3. Factory utilities
4. Sales commissions
5. Salary of Brampton's president
6. Factory depreciation
7. Wages of plant security guards
8. Uncollectible accounts expense
9. Machine lubricant used in production
Required:
By the use of numbers, identify the costs that would be used to calculate:
A. cost of goods manufactured.
B. manufacturing overhead.
C. total period costs.
D. total conversion costs.
E. total direct costs of Brampton's credit and collections department.
F. Brampton's inventory cost.

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Definitions:

Depositary Bank

A financial institution that holds and manages the deposits of securities for its clients and facilitates trading.

Payor Bank

A bank that is responsible for paying the checks or drafts of the person or entity that holds an account with them.

Drawn

Refers to the process of creating or producing something, usually in the context of drafting legal documents or pulling a negotiable instrument like a check.

Endorsement

The act of publicly supporting or approving something, or a legal amendment to a document or agreement, often seen in insurance policies or bank checks.