Fill in the third column of the chart by identifying cost

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Reference no: EM133920524

Problem

Steven, the manager at Martinez's Danishes, was excited to determine the company's profit this year. It was a break-out year for the company, especially after being selected to cater the World College Club Sports Athletes' Annual Meeting. The company was thrilled! The number and varlety of danishes produced for that event alone doubled the company's sales for the year. Steven knew the total sales amount but had yet to determine the total COGS. He hoped that it would be low relative to sales. Here are the transactions and amounts Steven found when gathering Information for his COGS calculation. Transaction Description Amount Advertising $11,000 Flour, eggs, sugar 277,000 Depreciation on baking equipment and kitchen 48,000 Delivery expense 8,200 Wages (baking employees) 345,000 Research and development 6,100 Utilitles for bakery space 22,000 Investment In mutual fund 64,000 Cash proceeds from loan 45,000 Wages (Indirect labor) 39,000 Salaries (executives and office staff) 121,000 Steven was sure that not all of these amounts should be Included In COGS but didn't know how to correctly sort them.

I. Fill In the third column of the above chart by Identifying whether each cost Item should be Initially recorded as an asset or as an expense. Get the instant assignment help.

II. Fill In the fourth column of the chart by recognizing, If each Item is considered to be Inventorlable (product) cost or not. Transaction Description Amount Initially an Asset or Expense Product Cost?

Reference no: EM133920524

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