Identifying product costs and period costs Classify each cost of a paper manufacturer as either product cost or period cost: Salaries of scientists studying ways to speed forest growth. Cost of computer software to track WIP Inventory. Cost of electricity at the paper mill. Salaries of the company’s top executives. Cost of chemicals to treat the paper. Cost of TV ads. Depreciation on the manufacturing plant. Cost to purchase wood pulp. Life insurance on the CEO.

I need answers to all parts in this question.     Cost Description Possible Measure of Activity 1. Salary of production manager at a surfboard manufacturer Surfboards produced 2. Cost of solder used in making computers Computers produced 3. Cost of dough used at a pizza shop Pizzas cooked 4. Janitorial wages at a surfboard manufacturer Surfboards produced 5. Salary of the controller at a hospital Number of patients 6. Cost of sales at an electronics store Dollar sales 7. Cost of testing materials used in a medical lab Tests run 8. Cost of heating an electronics store Dollar sales 9. Cost of electricity for production equipment at a surfboard manufacturer Surfboards produced 10. Depreciation on shelving at a book store Dollar sales Required:For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.   Essay  Toolbar navigation opens in a dialog

For apparel manufacturer Abercrobmie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: Research and development costs Depreciation on sewing machines Fabric used during production Depreciation on office equipment Advertising expenses Repairs and maintenance costs for sewing machines Salary of production quality control supervisor Utility costs for office building Sales commissions Salaries of distribution center personnel Wages of sewing machine operators Factory janitorial supplies Chief financial officer’s salary Travel costs of media relations employees Factory supervisors’ salaries Oil used to lubricate sewing machines Property taxes on factory building and equipment

For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, or selling and administrative. (a) Amortization of patents on factory machine (b) Components used to make product A (Select one) (Select one) (Select one) (c) Direct materials used (d) Factory utilities (e) Property taxes - factory. (f) The cost of a hard-drive installed in a computer for a computer assembling company (g) The wages of employees who assemble computers from components (h) The wages of the company's accountant (i) Wages of the product tester () Wages to assembly line A workers (Select one) (Select one) (Select one) (Select one) (Select one) (Select one) (Select one)

Concepts and terminology From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:   Materials for use in production are called (supplies, materials inventory). An example of factory overhead is (electricity used to run assembly line, CEO salary).