Bundle: Managerial Accounting, 14th + Cengagenowv2, 1 Term Printed Access Card
14th Edition
ISBN: 9781337499989
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 2PB
Classifying costs
The following is a list of costs incurred by several businesses:
- A. Salary of quality control supervisor
- B. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.
- C. Factory operating supplies
- D.
Depreciation of factory equipment - E. Hourly wages of warehouse laborers
- F. Wages of company controller's secretary
- G. Maintenance and repair costs for factory equipment
- H. Paper used by commercial printer
- I. Entertainment expenses for sales representatives
- J. Protective glasses for factory machine operators
- K. Sales commissions
- L. Cost of hogs for meat processor
- M. Cost of telephone operators for a toll-free hotline to help customers operate products
- N. Hard drives for a microcomputer manufacturer
- O. Lumber used by furniture manufacturer
- P. Wages of a machine operator on the production line
- Q. First aid supplies for factory workers
- R. Tires for an automobile manufacturer
- S. Paper used by Computer Department in processing various managerial reports
- T. Seed for grain farmer
- U. Health insurance premiums paid for factory workers
- V. Costs of operating a research laboratory
- W. Costs for television advertisement
- X. Executive bonus for vice president of marketing
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. Place an “X” in the appropriate column.
Product Costs | Period Costs | ||||
Cost | Direct Materials Cost | Direct Labor Cost | Factory Overhead Cost | Selling Expense | Administrative Expense |
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Bundle: Managerial Accounting, 14th + Cengagenowv2, 1 Term Printed Access Card
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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