Lynda AC505/Term Project Direct material cost is known as any material cost that can be identified specifically with a final cost objective. Material costs must not be charged to a contract as a direct cost if other material costs incurred for the same purpose in like circumstances have been charged as an indirect cost to that contract or any other contract. All material costs specifically identified with other contracts are direct costs for those contracts and must not be charged
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AC505 Final Exam Review Answers Chapter 2 COG Mfg & COGS – Traditional Costing – TCO A East of the Border Garage incurred the following costs during January: Raw materials $45,100 Direct labor 48,300 Manufacturing overhead 34,600 Selling expenses 29,800 Administrative expenses 36,700 Interest expense 8,500 During the month, 6,400 units of product were manufactured and 5,900 units of product were sold at $ 35 each. On January 1, East of the Border carried no inventories
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