Davos Inc. makes fiberglass ski-boards in Switzeriand. Identify the correct matching of terms. Fibergiass is factory overhead Plant real estate taxes are a period cost Depreciation on delivery trucks is a product cost Payroll taxes for workers in the Packaging Department are direct labor None of the above

Davos Inc. makes fiberglass ski-boards in Switzeriand. Identify the correct matching of terms. Fibergiass is factory overhead Plant real estate taxes are a period cost Depreciation on delivery trucks is a product cost Payroll taxes for workers in the Packaging Department are direct labor None of the above

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 6E: Davis Snowflake Co. produces Christmas stockings in its Cutting and Sewing departments. The...

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This list contains costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH).t Classify each of these items as direct materials, direct labor, or overhead. Glue used to attach labels to bottles containing a patented medicine. Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments. Insurance on a factory building and equipment. A production department supervisors salary. Rent on factory machinery. Iron ore in a steel mill. Oil, gasoline, and grease for forklift trucks in a manufacturing companys warehouse. Services of painters in building construction. Cutting oils used in machining operations. Cost of paper towels in a factory employees washroom. Payroll taxes and fringe benefits related to direct labor. The plant electricians salaries. Crude oil to an oil refinery. Copy editors salary in a book publishing company. Assume your classifications could be challenged in a court case. Indicate to your attorneys which of your answers for part a might be successfully disputed by the opposing attorneys and why. In which answers are you completely confident?
For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officers salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines j. Repairs and maintenance costs for sewing machines k. Research and development costs l. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operators
SM, Inc. makes ski-boards in Davao. Identify the correct matching of terms. * A. Fiberglass is factory overhead B. Plant real estate taxes are a period cost C. Depreciation on delivery trucks is a product cost D. Payroll taxes for workers in the Packaging Dept. are direct labor
Alan is the owner of a new manufacturing business, producing the vehicle components for Proton Supreme V supplies. Advise him by classifying the following costs into the correct categories; fixed cost, variable costs, production overhead, administration overhead, or distribution overhead. Depreciation of machinery Repairs to machinery Supervisors’ salary Assemblers’ wages Electric power Wages for driver of delivery lorry Raw materials: steels and metals Nuts and bolts Delivery costs Salary to administrative staff
Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative 1. President's salary. 2. Packages used to hold the skin wipes. 3. Cleaning materials used to clean the skin wipe packages. 4. Wages of workers who package the product. 5. Cost of advertising the product. 6. The salary of the supervisor of the workers who package the product. 7. Cost accountant's salary (the accountant works in the factory). 8. Cost of a market research survey. 9. Sales commissions paid as a percent of sales. 10. Depreciation of administrative office building. Problem B Classify the costs listed in the previous problem as either product costs or period costs.
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant b. Licensing payments for use of Disney characters on children products c. Maintenance supplies d. Packaging materials e. Paper used in bath tissue f. Plant manager salary for the Iowa City, Iowa, plant g. Resins for body wash products h. Salary of process engineers i. Scents and fragrances used in making soaps and detergents j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant
You have just been hired by Ogden Company to fill a new position that was created in response to rapidgrowth in sales. It is your responsibility to coordinate shipments of finished goods from the factory to distribution warehouses located in various parts of the United States so that goods will be available as ordersare received from customers.The company is unsure how to classify your annual salary in its cost records. The company’s costanalyst says that your salary should be classified as a manufacturing (product) cost; the controller says thatit should be classified as a selling expense; and the president says that it doesn’t matter which way yoursalary cost is classified.Required:1. Which viewpoint is correct? Why?2. From the point of view of the reported net operating income for the year, is the president correct in hisstatement that it doesn’t matter which way your salary cost is classified? Explain.
Indicate whether the following costs of P r oct er & Gamb le , a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: A. B. C. D. E. F. G. H. I. J. EX A. Plant manager salary for the Iowa City, Iowa, plantB. Maintenance suppliesC. Salary of process engineersD. Wages paid to Packaging Department employees in the Bear River City, Utah, paper products plant E. Scents and fragrances used in making soaps and detergents F. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant G. Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plant H. Packaging materialsI. Resins for body wash products J. Depreciation on the Auburn, Maine, manufacturing plant
Listed here are product costs for the production of soccer balls. Classify each cost (a) as either variable(V) or fixed (F) and (b) as either direct (D) or indirect (I). What patterns do you see regarding the relationbetween costs classified in these two ways?Product Cost 1. Leather covers for soccer balls . . . . . . . . . . . . . . . . . . . . . .2. Annual flat fee paid for office security3. Coolants for machinery4. Wages of assembly workers5. Thread to hold leather together6. Taxes on factory .7. Machinery depreciation (straight-line) .
Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.For each item, indicate the cost category to which it belongs. (A,B,C, or D) Item Category 1. Property taxes on the factory building. select the cost category 2. Production superintendents’ salaries. select the cost category 3. Memory boards and chips used in assembling computers. select the cost category 4. Depreciation on the factory equipment. select the cost category 5. Salaries for assembly-line quality control inspectors. select the cost category 6. Sales commissions paid to sell laptop computers. select the cost category 7. Electrical components used in assembling computers. select the…
Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.Classify the below items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead. Item Category 1. Salaries for assembly line inspectors. select a category 2. Insurance on factory machines. select a category 3. Property taxes on the factory building. select a category 4. Factory repairs. select a category 5. Upholstery used in manufacturing furniture. select a category 6. Wages paid to assembly line workers. select a category…
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. Cost Classifications Variable Fixed Period Product Administrative Selling Manufacturing Research and Development Direct material Direct labor Manufacturing overhead Cost Items: Cost of fabric used in T-shirts Wages of shirtmakers Cost of new sign in front of retail T-shirt shop Wages of employee who repairs the firms sewing machines Cost of electricity used in the sewing department Wages of T-shirt designers and painters Wages of sales personnel Depreciation on sewing machines Rent on the building that is used to make and paint T-shirts Cost of daily advertisements in local media Wages of designers who experiment with new fabrics, paints and T-shirt designs Cost of…