Blankenship Company, maker of wood shelving, incurred the following cost during thecurrent year. Is the following cost item a product cost or a period cost?Salary of Blankenship's chief executive officerPeriodProduct Blankenship Company, maker of wood shelving, incurred the following cost during thecurrent year. Is the following cost item a product cost or a period cost?Depreciation on automobiles used by the sales staff.O PeriodProduct

Salary of Blankenship's chief executive officer. Period cost Explanation - Chief executive…

Answered: Blankenship Company, maker of wood…

Blankenship Company, maker of wood shelving, incurred the following cost during the current year. Is the following cost item a product cost or a period cost?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing business

Section: Chapter Questions

Problem 2MC: The adjustment for depreciation expense for the year on the factory building includes a (a) debit to...

See similar textbooks

Related questions

Q: Which of the following is an example of a period cost? O a Advertising cost for a new product…

A: Period Cost are the costs, which are not assigned to the products but are charged as expenses…

Q: Required: a. Compute the total prime costs for the month of May. b. Compute the total conversion…

A: Total Prime cost = Direct materials + Direct Labor Conversion costs = Direct labor + Manufacturing…

Q: The following account balances are from Woods Corporation accounting records for the year ended…

A: 1. Amount of direct material used in production = Raw materials inventory, Jan 1 2008 + Raw material…

Q: Calculate the cost of goods manufactured if total manufacturing costs were $15,786, beginning work…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Is manufacturing overhead underapplied or overapplied for the year? By how much? What is the cost of…

A: since you have asked a question with multiple subparts, we will be answering first three subparts…

Q: What was Albay's cost of goods sold? Albay Company incurred the following costs and expense during…

A: The cost of goods sold is calculated as difference between total cost of goods available for sale…

Q: According to the information given in the table below, which of the following is Cost of Goods…

A: Formula: Cost of goods manufactured =Beginning work in process + Cost of production - ending work in…

Q: determine the total manufacturing costs during the current year:

A: Total manufacturing costs is the total cost a company incurred on its manufacturing process to…

Q: What are the total costs to account for if a company's beginning inventory had $279,160 in…

A: Cost incurred in current year period = Direct material costs + Direct labor + Manufacturing overhead…

Q: Blankenship Company, maker of wood shelving, incurred the following cost during current year. Is the…

A: Solution 1: Product costs are those costs which are incurred in the process of manufacturing…

Q: Bonita Industries reported the following year-end information: beginning work in process inventory,…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The following account balances are from Woods Corporation accounting records for the year ended…

A: The manufacturing overhead cost includes all the indirect cost and factory expenses.

Q: Determine whether each of the following costs should be classified as product costs or period costs.…

A: Product costs are those costs that are associated with the process of manufacture and period costs…

Q: What is the total manufacturing overhead cost incurred by Pro-Leather Company during the period?…

A: Manufacturing Overhead:-These is the total cost incurred for the production of goods which includes…

Q: Listed below are several costs incurred during the year. For each cost match the classification that…

A: Ans. Period costs are the costs that are not directly incurred on manufacturing or production but…

Q: Ramesh Abdul Industries Presents you the following data relating to the operations for the year…

A: Cost of goods manufactured includes all the cost pertaining to manufacturing of goods and it…

Q: Concord Corporation has beginning work in process inventory of 148000 and total manufacturing costs…

A: Ending work in process inventory represents the cost of inventory that remains in the work in…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…

Q: Chips Co., maker of computers, incurred the following cost during the year. Is the following cost…

A: Depreciation: It is reduction is a fixed in the value of asset over the time of the asset. It is a…

Q: The following account balances are from Woods Corporation accounting records for the year ended…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: The following cost data relate to the manufacturing activities of the Kamas Company during the most…

A: The cost of goods manufactured is a calculation that is used to gain a general understanding of…

Q: The Childers Company manufactures widgets. During the fiscal year just ended, the company incurred…

A: Prime cost = Direct material cost + Direct labor cost Conversion cost = Direct labor cost + Overhead…

Q: Based upon the above information, the manufacturing costs incurred during the year were?

A: Manufacturing overheads: Manufacturing overheads refers to the indirect factory- a related cost that…

Q: T-Account Analysis of Cost Flows Selected T-accounts of Moore Company are given below for the just…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

Q: The following cost data relate to the manufacturing activities of the Kamas Company during the most…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Classification of Costs Following is a list of costs from Oakland Company, a furniture…

Q: Bonita Industries reported the following year-end information: beginning work in process inventory,…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: a) Purchases of direct material b) The cost of direct material used c) Why does direct labor account…

Q: What is the ending balance in Finished Goods? (Show T-Account) Assuming that the company closes its…

A: Overapplied Overhead: If the actual overhead incurred in a period is less than the…

Q: What are the total costs to account for if a company’s beginning inventory had $231,432 in…

A: Total costs to account = Total Beginning inventory + Total added costs

Q: Octie Company reports the following costs and expenses in January 2020. Required: From the…

A: Formula: Period costs = Direct materials used + Direct labor + Manufacturing overhead

Q: What are the total costs to account for if a company's beginning inventory had $231,430 in…

A: Total cost includes direct materials, direct labor, and other indirect productive expenses.

Q: For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify each of the following costs as…

A: Product costs would be those directly associated with the manufacturing of a for-sale service or…

Q: The the third quarter records of Clemmie Corporation indicate that they incurred the following costs…

A: Product Costs mean the costs incurred directly related to the production of a product. Product costs…

Q: I need only question 8 and 10 to be solved please 8.- What is the total amount of actual…

A: Cost accounting is widely used by the management to determine the cost of the product produced in…

Q: Deja Brew Company reported the following for the most recently completed fiscal year: Raw Materials…

A: INTRODUCTION: COGS referred Cost of goods sold refers to expenses directly associated with…

Q: Kainkamuna Co. is engaged in the business of manufacturing basket balls. The company employs actual…

A: The prime cost is calculated as sum of direct material costs and direct labor cost.

Q: Selected T-accounts of Moore Company are given below for the just completed year Required: 1.…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Consider the following costs that were incurred during the current year and determine whether the…

A: Product costs are the costs incurred in manufacturing the product. So, this include direct…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Rent on…

A: Solution: Introduction: Product Costs are the costs which are directly associated with the…

Q: Do you agree with the following statements? Check only those with which you agree. Choose All That…

A: 1. Yes i agree, Work in process means the goods from raw material to finished goods not finished. so…

Question

Blankenship Company, maker of wood shelving, incurred the following cost during the
current year. Is the following cost item a product cost or a period cost?
Salary of Blankenship's chief executive officer
Period
Product

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 - Answer

VIEW

Step 2 - Definition of product and period cost

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Ryan Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used Instructions $100,000 60,000 7,500 110,000 13,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 14,000 21,000 35,000 50,000 (a) Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs. (b) Explain the basic difference in accounting for product costs and period costs.
National Co. produces small electric engines. It incurs the following costs for the year. Which of the following costs is not a fixed manufacturing overhead cost? Lease payments for the president's automobile Property taxes paid on the factory facilities Salary of the plant supervisor Straight-line depreciation on the factory building
2. A boat manufacturer produces 30 boats this year and incurred $3.6 million in material, labor, and overhead costs. 19 boats were sold during the year, and each boat was allocated the same amount of costs. a. How much of the $3.6 million of total manufacturing costs should appear on the Company's income statement as Costs of Goods Sold? b. Assuming Finished Goods Inventory consisted of only the unsold boats produced this year then what is the $ amount of Finished Goods Inventory?
The following calendar-year information is taken from the adjusted trial balance and other records of Dahlia Company. Advertising expense . $ 19,125 Depreciation expense—Office equipment 8,750 Depreciation expense—Selling equipment . 10,000 Depreciation expense—Factory equipment 32,500 Factory supervision . 122,500 Factory supplies used (indirect materials) 15,750 Factory utilities 36,250 Inventories Raw materials, beginning 177,500 Raw materials, ending 168,125 Work in process, beginning . 15,875 Work in process, ending . 14,000 Finished goods, beginning . 164,375 Finished goods, ending 129,000 Direct labor $ 650,750 Indirect labor 60,000 Miscellaneous production costs . . . . . . . . . . . . . 8,500 Office salaries expense . 100,875 Raw materials purchases (direct materials) . 872,500 Rent expense—Office space 21,125 Rent expense—Selling space . 25,750 Rent expense—Factory building 79,750 Maintenance expense—Factory equipment 27,875 Sales . 3,275,000 Sales discounts . 57,500 Sales…
The following are classified under period costs, except: * 1 point a. Depreciation of factory equipment b. Depreciation of office equipment c. Commission of salesman d. Office supplies
Do you agree with the following statements? Check only those with which you agree. Choose All That Apply At the end of the period, the balance remaining in Work in Process is carried forward to the next period.At the end of the period, the balance remaining in Work in Process is carried forward to the next period. Burgess Company incurred costs of $50,000 to manufacture products during the period when no units were sold. No period costs will be reported in this regard on the company's income statement for the period. Burgess Company incurred costs of $50,000 to manufacture products during the period when no units were sold. No period costs will be reported in this regard on the company's income statement for the period. Only manufacturing companies use a predetermined overhead application rate; such rates are not used by service companies.Only manufacturing companies use a predetermined overhead application rate; such rates are not used by service companies. Service…
2. A boat manufacturer produces 30 boats this year and incurred $3.6 million in material, labor, and overhead costs. 19 boats were sold during the year, and each boat was allocated the same amount of costs. a. How much of the $3.6 million of total manufacturing costs should appear on the Company's income statement as Costs of Goods Sold? b. Assuming Finished Goods Inventory consisted of only the unsold boats produced this year then what is the $ amount of Finished Goods Inventory? (Show all calculations)
The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost
The adjustment for depreciation expense for the year on the factory building includes a (a) debit to Depreciation Expense. (b) credit to Factory Overhead. (c) credit to Accumulated Depreciation. (d) debit to Accumulated Depreciation.
Is manufacturing overhead underapplied or overapplied for the year? By how much? What is the cost of goods available for sale during the year? (Show complete calculations) What is the journal entry to record the cost of goods sold referred to above? What is the ending balance in Finished Goods? (Show T-Account) Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? What is the gross margin for the year? What is the net operating income for the year?
Compute the Cost of Goods Manufactured and Cost of Goods Sold for West Nautical Company for the most recent year using the amounts described in the picture. Assume that the Raw Materials Inventory contains only direct materials.
Assuming only Job# 2 and 3 were completed and sold, what is the cost ofgoods sold at year end?