Managerial Accounting, Loose-leaf Version, No Access Codes/book Only
14th Edition
ISBN: 9781337541411
Author: Carl S. Warren; James M. Reeve; Jonathan Duchac
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 1PA
Classifying costs
The following is a list of costs (hai were incurred in (he production and sale of large commercial airplanes:
- A. Salary of chief compliance officer of company
- B. Power used by painting equipment
- C. Instrument panel installed in the airplane cockpit
- D. Annual bonus paid to the chief operating officer of the company
- E. Turbo-charged airplane engine
- F. Interior trim material used throughout the airplane cabin
- G. Cost of normal scrap from production of airplane body
- H. Hourly wages of employees that assemble the airplane
- I. Salary of the Marketing Department personnel
- J. Cost of paving the headquarters employee parking lot
- K. Cost of electrical wiring throughout the airplane
- L. Cost of electronic guidance system installed in the airplane cockpit
- M. Salary of plant manager
- N. Cost of miniature replicas of the airplane used to promote and market the airplane
- O. Human Resources Department costs for the year
- P. Metal used for producing the airplane body
- Q. Annual fee to a celebrity to promote the aircraft
- R. Hydraulic pumps used in the airplane's flight
control system - S. Yearly cost of the maintenance contract for robotic equipment
- T. Prebuilt leather seats installed in the first-class cabin
- U.
Depreciation on factory equipment - V. Special advertising campaign in Aviation World magazine
- W. Oil to lubricate factory equipment
- X. Masks for use by painters in painting the airplane body
- Y. Decals for cockpit door, the cost of which is immaterial to the cost of the final product Z. Salary of chief financial officer
Instructions
Classify each cost as either a product cost or a period cost. Indicato whether each produci cost is a direct materials cost, a direct labor cost, or a factory
| Product Costs | Period Costs | ||||
| Cost | Direct Materials6 Cost |
Direct Labor Cost |
Factory Overhead Cost | Selling Expense | Administrative Expense |
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Classifying costsThe following is a list of costs that were incurred in the production andsale of large commercial airplanes:
a. Cost of electronic guidance system installed in the airplanecockpitb. Special advertising campaign in Aviation World magazinec. Salary of chief compliance officer of companyd. Salary of chief financial officer
e. Decals for cockpit door, the cast of which is immaterial to thecost of the final productf. Cost of electrical wiring throughout the airplaneg. Cost of normal scrap from production of airplane bodyh. Instrument panel installed in the airplane cockpit
i. Depreciation on factory equipmentj. Masks for use by painters in painting the airplane bodyk. Cost of paving the headquarters employee parking lotl. Turbo-charged airplane enginem. Prebuilt leather seats installed in the first-class cabin
n. Human Resources Department costs for the yearo. Hourly wages of employees that assemble the airplanep. Salary of the Marketing Department personnel
q. Oil to…
The following is a list of costs that were incurred in the production and sale of large commercial airplanes:a. Cost of electronic guidance system installed in the airplane cockpitb. Special advertising campaign in Aviation World magazinec. Salary of chief compliance officer of companyd. Salary of chief financial officere. Decals for cockpit door, the cost of which is immaterial to the cost of the final productf. Cost of electrical wiring throughout the airplaneg. Cost of normal scrap from production of airplane bodyh. Instrument panel installed in the airplane cockpiti. Depreciation on factory equipmentj. Masks for use by painters in painting the airplane bodyk. Cost of paving the headquarters employee parking lotl. Turbo-charged airplane enginem. Prebuilt leather seats installed in the first-class cabinn. Human Resources Department costs for the yearo. Hourly wages of employees that assemble the airplanep. Salary of the Marketing Department personnelq. Oil to lubricate factory…
Indicate for each of the following costs whether it is a product cost or a period cost.1. Wages of aircraft mechanics employed by an airline.2. Wages of drill-press operators in a manufacturing plant.3. Cost of food in a microwavable dinner.4. Cost incurred by a department store chain to transport merchandise to its stores.5. Cost of grapes purchased by a winery.6. Depreciation on pizza ovens in a pizza restaurant.7. Cost of plant manager in a computer production facility.8. Wages of security personnel in a department store.9. Cost of utilities in a manufacturing facility.
Chapter 1 Solutions
Managerial Accounting, Loose-leaf Version, No Access Codes/book Only
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - Prob. 9DQCh. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Concepts and terminology From the choices...Ch. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Prob. 10ECh. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - Classifying costs The following is a list of costs...Ch. 1 - Prob. 2PACh. 1 - Cost classifications for a service company A...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - Classifying costs The following is a list of costs...Ch. 1 - Prob. 3PBCh. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1ADMCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 3ADMCh. 1 - Prob. 4ADMCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...
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