The following is a list of costs incurred by several manufacturing companies: a. Annual picnic for plant employees and their families b. Cost of fabric used by clothing manufacturer c. Cost of plastic for a toy manufacturer d. Cost of sewing machine needles used by a shirt manufacturer e. Cost of television commercials f. Depreciation of copying machines used by the Marketing Department g. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules h. Depreciation of office building i. Depreciation of robotic equipment used to assemble a product j. Electricity used to operate factory machinery k. Factory janitorial supplies I. Fees charged by collection agency on past-due customer accounts m. Fees paid to lawn service for office grounds n. Maintenance costs for factory equipment o. Oil lubricants for factory plant and equipment p. Pens, paper, and other supplies used by the Accounting Department q. Repair costs for factory equipment r. Rent for a warehouse used to store work in process and finished products s. Salary of a physical therapist who treats plant employees t. Salary of the manager of a manufacturing plant u. Telephone charges by corporate office v. Travel costs of marketing executives to annual sales meeting w. Wages of a machine operator on the production line x. Wages of production quality control personnel Instructions Classify each of the preceding costs as a product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer, placing an “X” in the appropriate column:

BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020
BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020

Solutions

Chapter
Section
Chapter 1, Problem 2PA
Textbook Problem

The following is a list of costs incurred by several manufacturing companies:

a. Annual picnic for plant employees and their families

b. Cost of fabric used by clothing manufacturer

c. Cost of plastic for a toy manufacturer

d. Cost of sewing machine needles used by a shirt manufacturer

e. Cost of television commercials

f. Depreciation of copying machines used by the Marketing Department

g. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules

h. Depreciation of office building

i. Depreciation of robotic equipment used to assemble a product

j. Electricity used to operate factory machinery

k. Factory janitorial supplies

I. Fees charged by collection agency on past-due customer accounts

m. Fees paid to lawn service for office grounds

n. Maintenance costs for factory equipment

o. Oil lubricants for factory plant and equipment

p. Pens, paper, and other supplies used by the Accounting Department

q. Repair costs for factory equipment

r. Rent for a warehouse used to store work in process and finished products

s. Salary of a physical therapist who treats plant employees

t. Salary of the manager of a manufacturing plant

u. Telephone charges by corporate office

v. Travel costs of marketing executives to annual sales meeting

w. Wages of a machine operator on the production line

x. Wages of production quality control personnel

Instructions

Classify each of the preceding costs as a product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer, placing an “X” in the appropriate column:

Chapter 1, Problem 2PA, The following is a list of costs incurred by several manufacturing companies: a. Annual picnic for

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Chapter 1 Solutions

Managerial Accounting
Ch. 1 - Management process Three phases of the management...Ch. 1 - Direct materials, direct labor, and factory...Ch. 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 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Which of the following items are properly...Ch. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Cost of goods manufactured for a manufacturing...Ch. 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 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Hilton Hotels and Marriott International:...Ch. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Occupancy for a Hospital The Valley Hospital...Ch. 1 - Passenger load on a flight Eastern Skies Airlines...Ch. 1 - Ethics in Action Avett Manufacturing Company...Ch. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - A review of Plunkett Corporations accounting...Ch. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...

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