Homework Help is Here – Start Your Trial Now!
Business
Accounting
EX 18-4 Classifying costs as product or period costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: OBJ. 2 Real World a. Cost of information technology support for the corporate headquarters i. Sales commissions j. Salaries of distribution center personnel b. Depreciation on sewing machines c. Fabric used during production k. Wages of sewing machine operators 1. Factory janitorial supplies m. Chief financial officer's salary d. Depreciation on office equipment e. Advertising expenses n. Travel costs of media relations f. Repairs and maintenance costs for sewing machines employees o. Factory supervisors' salaries g. Salary of production quality control mom supervisor p. Oil used to lubricate sewing machines q. Property taxes on factory building and equipment h. Utility costs for office building EX 18-10 Financial statements of a manufacturing firm The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. OBJ. 4 . Net income, 5,000 Show Me How b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

EX 18-4 Classifying costs as product or period costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: OBJ. 2 Real World a. Cost of information technology support for the corporate headquarters i. Sales commissions j. Salaries of distribution center personnel b. Depreciation on sewing machines c. Fabric used during production k. Wages of sewing machine operators 1. Factory janitorial supplies m. Chief financial officer's salary d. Depreciation on office equipment e. Advertising expenses n. Travel costs of media relations f. Repairs and maintenance costs for sewing machines employees o. Factory supervisors' salaries g. Salary of production quality control mom supervisor p. Oil used to lubricate sewing machines q. Property taxes on factory building and equipment h. Utility costs for office building EX 18-10 Financial statements of a manufacturing firm The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. OBJ. 4 . Net income, 5,000 Show Me How b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
Problem 18.8EX: Identifying activity bases in an activity-based cost system Select Foods Inc. uses activity-based...
See similar textbooks
icon
Related questions
Question
EX 18-4 Classifying costs as product or period costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: OBJ. 2 Real World a. Cost of information technology support for the corporate headquarters i. Sales commissions j. Salaries of distribution center personnel b. Depreciation on sewing machines c. Fabric used during production k. Wages of sewing machine operators 1. Factory janitorial supplies m. Chief financial officer's salary d. Depreciation on office equipment e. Advertising expenses n. Travel costs of media relations f. Repairs and maintenance costs for sewing machines employees o. Factory supervisors' salaries g. Salary of production quality control mom supervisor p. Oil used to lubricate sewing machines q. Property taxes on factory building and equipment h. Utility costs for office building
Transcribed Image Text:EX 18-4 Classifying costs as product or period costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: OBJ. 2 Real World a. Cost of information technology support for the corporate headquarters i. Sales commissions j. Salaries of distribution center personnel b. Depreciation on sewing machines c. Fabric used during production k. Wages of sewing machine operators 1. Factory janitorial supplies m. Chief financial officer's salary d. Depreciation on office equipment e. Advertising expenses n. Travel costs of media relations f. Repairs and maintenance costs for sewing machines employees o. Factory supervisors' salaries g. Salary of production quality control mom supervisor p. Oil used to lubricate sewing machines q. Property taxes on factory building and equipment h. Utility costs for office building
EX 18-10 Financial statements of a manufacturing firm The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. OBJ. 4 . Net income, 5,000 Show Me How b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.
Transcribed Image Text:EX 18-10 Financial statements of a manufacturing firm The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $168,500 of materials. OBJ. 4 . Net income, 5,000 Show Me How b. Used $149,250 of direct materials in production. c. Incurred $360,000 of direct labor wages. d. Incurred $120,000 of factory overhead. e. Transferred $600,000 of work in process to finished goods. f. Sold goods for $875,000. g. Sold goods with a cost of $525,000. h. Incurred $125,000 of selling expense. i. Incurred $80,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Digital Vibe Manufacturing Company. b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer