Question 4 Various cast associated with the operation of factories are given below: Electricity to run production cost, Rent on factory building Cloth used to make drapes. Production supervisor salary. Wages of labourers assembling a product. Depreciation on air purification equipment used to make furniture. F'actory janitorial salarics Tomatoes used in canning fruits. Lubricants for production equipment. Sugar used in soft drink production. Property tax on the factory. Wages for workers painting cars. Depreciation on canteen equipment. Insurance on building used in bakıng bread for sale. Cost of brakes used in manufacturing automobile. 6. 8 10 11 12 13 14 15 Required: Classify each cost as either variable or fixed with respect to the number of units produced and sold. Also indicate whether each cost is either product cost or period cost. (Fill X in the table given in the answer sheet). a) " The variable cost per unit varies with output, whereas the fixed cost per unit in constant". Do you agree? Justify your answers. b) Explain any 3 (THREE) differences between financial accounting and management accounting. c)

Question 4 Various cast associated with the operation of factories are given below: Electricity to run production cost, Rent on factory building Cloth used to make drapes. Production supervisor salary. Wages of labourers assembling a product. Depreciation on air purification equipment used to make furniture. F'actory janitorial salarics Tomatoes used in canning fruits. Lubricants for production equipment. Sugar used in soft drink production. Property tax on the factory. Wages for workers painting cars. Depreciation on canteen equipment. Insurance on building used in bakıng bread for sale. Cost of brakes used in manufacturing automobile. 6. 8 10 11 12 13 14 15 Required: Classify each cost as either variable or fixed with respect to the number of units produced and sold. Also indicate whether each cost is either product cost or period cost. (Fill X in the table given in the answer sheet). a) " The variable cost per unit varies with output, whereas the fixed cost per unit in constant". Do you agree? Justify your answers. b) Explain any 3 (THREE) differences between financial accounting and management accounting. c)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

QUESTION 12 Which of the following costs is not a product cost? The cost of fuel used in the factory The electricity cost of the office of factory foreman Depreciation on the plant installed in the factory The cost of shipping finished products to customers
Classify each of the following costs as manufacturing or non manufacturing: 1. Factory rental 2. Interest on bank overdraft 3. Depreciation on warehouse equipment 4. Salary and bonus for the chief accountant 5. Wages of security guards in factory 6. Advertising 7. Property taxes on corporate headquarters building 8. Gas and electricity for the factory 9. Carriage on purchase of raw materials 10. Operators of product help lines for customers
4. Which of the following should be classified as part of factory overhead for Caterpillar Inc, a maker of heavy machinery and equipment? I. Steel plateII. Plant manager’s salaryIII. Interest expense on debtIV. Factory supplies used in the plantV. Vice President of Finance’s salaryVI. Amortization of patents on the new assembly process A. I, II and V are correct.B. I, II and III are correct.C. II, IV and VI are correct.D. IV, V and VI are correct.
Problem 1Classify the following as to Fixed, Variable or Mixed Cost1. Factory Rent2. Wages of workers paid based on units produced3. Cost Accountant Salary4. Depreciation based on output5. Salary of Factory supervisor6. Basic Salary plus sales commission of salesman7. Paper in manufacturing of books8. Factory Insurance9. Monthly Depreciation of Building10. Bottle used in packaging
23. Which of the following costs is relevant to a make-or-buy decision of a particular part of a product? a.The direct labor costs used to manufacture the part b.The depreciation on the plant used to manufacture the part c.The fixed annual rent paid for the office building d.The salary of the sales manager who sells the product
Question#1 1. Identify whether each of the following is classified as a product cost or a period cost.______________ 1. Direct labor______________ 2. Direct materials______________ 3. Factory utilities______________ 4. Repairs to office equipment______________ 5. Property taxes on factory building______________ 6. Sales salaries Question#2 Indicate whether each of the following costs of a pencil manufacturer would be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO).a. ____ Depreciation of pencil painting machineryb. ____ Lead inserted into pencilsc. ____ Factory utilitiesd. ____ Wages of assembly line workere. ____ Salary of supervisorf. ____ Factory machinery maintenanceg. ____ Woodh. ____ Eraser compound Question#3 Raynor Company has the following data:Direct labor $76,000Direct materials used 84,000Total manufacturing overhead 65,000Ending work in process 30,000Beginning work in process 45,000InstructionsCompute (a) total manufacturing costs…
which of the following is a product cost for a manufacturing company : a- insurance on the corporate headquarters building b- property taxes on a factory c- depreciation on a salesperson vehicle d- the salary of a sales manager
Which of the following costs is not a product cost? *1 pointa. Depreciation on the plant installed in the factoryb. The electricity cost of the office of factory foremanc. The cost of shipping finished products to customersd. The cost of fuel used in the factory
Which one of the following discretionary fixed cost? The salary of the deputy manager of the factory plant .The depreciation cost of the Headquarters offices The property taxes of the factory plant the cost of accounting system of the company .None of the given answers
Cost Item Product or Period Cost? Direct or Indirect Cost? Fixed or Variable Cost? 1 Depreciation on salespersons' cars 2 Rent on equipment used in the factory 3 Lubricants used for machine maintenance 4 Salaries of personnel who work in the finished goods warehouse 5 Soap and paper towels used by factory workers at the end of a shift 6 Factory supervisors' salaries 7 Heat, Water and power consumed in the factory 8 Materials used for boxing products for shipment overseas 9 Advertising costs 10 Workers' compensation insurance for factory employees
Which of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5) Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plant
A. Which of the following costs is not a product cost? Depreciation on the plant installed in the factory The electricity cost of the office of factory foreman The cost of shipping finished products to customers The cost of fuel used in the factory B. Which of the following costs is not a period cost? Advertising cost Sales commission Interest Direct labor C. Which of the following would not be classed as a service department? The maintenance department The canteen The finance department The assembly department D. Job costing is the most suitable method for? Oil processing units Transport Companies Sugar Industry Repair shops E. Paper mills are must adopt? Unit costing Process costing Job costing Contract costing