Cost Object = T-shirt sold in the apparel section of the store

Cost variability = With respect to the changes in number of t-shirt sold

Cost D/I V/F

1.     Annual fee for licensing the school logo D F
2.     Cost of stores’ manager salary I F
3.     Cost of t-shirt purchased for sale to customer D V
4.     Subscription to College Apparel Trends magazine D F
5.     Leasing of computer software used for financial budgeting at the store I F
6.     Cost of coffee provided free to all customers I V
7.     Cost of cleaning the store every night after closing I F
8.     Freight-in costs of t-shirt purchased by ECS D V
Cost Object = number of recliners assembled
Cost variability = With respect to the changes in number of recliners
assembled

Cost D/I V/F

1.     Cost of fabric used on recliners D V
2.     Salary for public relations managers for Depok Furniture I F
3.     Annual convention for furniture manufacturers; generally Depok
Furniture attends I F
4.     Cost of lubricants used on the recliner assembly line D F
5.     Freight cost of recliner frames shipped from Medan to Depok D V
6.     Electricity cost for recliner assembly line (single bill covers entire plant) I V
7.     Wages paid to temporary assembly line workers hired in periods of high
recliner production (paid on hourly basis) D V
8.     Annual fire-insurance policy for the whole plant I F
9.     Wages paid to plant manager who oversees the assembly lines for both
chair I F
A) Manufacturing Companies
Merchandising Companies

Service Companies

B) Inventoriable Cost
Period Cost

C) Cost
1.     Cost of plumber and plumbing supplies available for sale at Ace
Hardware
2.     Electricity used to provide lighting for assembly-line workers at Samsung
manufacturing plant
3.     Mileage paid to nannies travelling to clients for Rent a Nanny
4.     Wages for personnel responsible for quality testing of the Samsung
products during the assembly process
5.     Salaries for Rent a Nanny marketing personnel
6.     Lunches provided to the nannies for Rent a Nanny
7.     Salaries of employees at Samsung retail stores
8.     Shipping costs for Samsung to transport products to retail stores
 purchase materials and convert them into various
finished
purchasegoods, for example
and then automotive
sell tangible and
products textile
without
companies.
changing their basic form, for example retailing or
distribution.
provide services or intangible products to their
allcustomers,
costs in thefor
income statement
example, other or
legal advice than cost of
audits.
costs
goodsof sold.
a product
Thesethat areare
costs considered
treated asasexpenses
assets in of
the
balance sheet when they are incurred and
the accounting period in which they are incurred that
become
because cost of goods
they sold when
are expected notthe productfuture
to benefit is sold.
periods.

I/P
I
I
P
I
P
P
P
P
Income Statement

Urban Corporation
Income Statement
For the Year Ended 31 December 2020

Revenues 950
COGS:
Beginning FG Inventory, Jan 1 2020 70
Cost of Goods Manufactured 645
Cost of Goods Available for Sale 715
Ending Finished Goods Inventory 55
COGS 660
Gross Margin 290
Operating
Marketing,Costs:
distribution, and customer service
cost 240

Operating Income 50

Schedule of Cost of Goods Manufactured

Urban Corporation
Schedule of Cost of Goods Manufactured
For the Year Ended 31 December 2020

Direct Materials
Beginning Inventory, January 1 2020 15
Purchases of Direct Materials 325
Cost of Direct Materials Available for Use 340
Ending Inventory, December 31 2020 20
Direct Materials Used 320

Direct Manufacturing Labor 100

Manufacturing Overhead Costs

Depreciation - Plant and Equipment 80
Plant Supervisory Salaries 5
Miscellaneous 35
Supplies 10
Plant Utilities 30
Indirect Manufacturing Labor 60
Total Manufacturing Overhead Cost 220

Manufacturing Cost Incurred 2020 640

Beginning WIP Inventory 10
Total Manufacturing Cost to Account For 650
Ending WIP Inventory 5

Cost of Goods Manufactured 645