Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Textbook Question
Chapter 10, Problem 10.1P
Classifying costs
The following is a list of costs that were incurred in the production and sale of all-terrain vehicles (ATVs).
a.Attorney fees for drafting a new lease for headquarters offices.
b.Cash paid to outside firm for janitorial services for factory.
c. Commissions paid to sales representatives, based on the number of ATVs sold.
d.Cost of advertising in a national magazine.
e.Cost of boxes used in packaging ATVs.
f. Electricity used to run the robotic machinery.
g.Engine oil used in engines prior to shipment. h. Factory cafeteria cashier's wages.
i. Filler for spray gun used to paint the ATVs.
j. Gasoline engines used for ATVs.
k.Hourly wages of operators of robotic machinery used in production.
I. License fees for use of patent for transmission assembly, based on the number of ATVs produced.
m. Maintenance costs for new robotic factory equipment, based on hours of usage.
n. Paint used to coat the ATVs.
o.Payroll taxes on hourly assembly line employees.
p.Plastic for outside housing of ATVs.
q.Premiums on insurance policy for factory buildings.
r. Properly taxes on the factory building and equipment.
s.Salary of factory supervisor.
t. Salary of quality control supervisor who inspects each ATV before it is shipped.
u.Salary of vice president of marketing.
v. Steering wheels for ATVs.
w. Straight-line
x.Steel used in producing the ATVs.
y.Telephone charges for company controller's office.
z.Tires for ATVs.
Instructions
Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a
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Classifying Costs as Materials, Labor, or Factory Overhead
Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost:
Cost
Classification
a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant
b. Licensing payments for use of Disney characters on children products
c. Maintenance supplies
d. Packaging materials
e. Paper used in bath tissue
f. Plant manager salary for the Iowa City, Iowa, plant
g. Resins for body wash products
h. Salary of process engineers
i. Scents and fragrances used in making soaps and detergents
j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant
: State with reasons whether following Expenses/ Receipts of a Foam manufacturing factory are of Capital or Revenue nature;
1) Rent paid in advance to owners of building
2) Carriage expenses paid to suppliers
3)Purchases new supply trucks
4) Replacement of old machinery with new ones
5) Commission paid to marketing agents
Chapter 10 Solutions
Survey of Accounting (Accounting I)
Ch. 10 - Which 01 the following is not considered a cost of...Ch. 10 - Which of the following costs would be included as...Ch. 10 - A company estimated $420,000 of factory overhead...Ch. 10 - If the factory overhead account has a negative...Ch. 10 - When using job order costing for a professional...Ch. 10 - List three differences in how managerial...Ch. 10 - For a company that produces desktop computers,...Ch. 10 - How is product cost information used by managers?Ch. 10 - a.Name two principal types of cost accounting...Ch. 10 - What kind of firm would use a job order cost...
Ch. 10 - Prob. 6CDQCh. 10 - Prob. 7CDQCh. 10 - Describe the Source 01 the data for increasing...Ch. 10 - Prob. 9CDQCh. 10 - a.How is a predetermined factory overhead rate...Ch. 10 - a.What is (1) overapplied factory overhead and (2)...Ch. 10 - At the end of the fiscal year, there s a...Ch. 10 - What is the difference between a product cost and...Ch. 10 - Prob. 14CDQCh. 10 - Prob. 15CDQCh. 10 - How can activity based costing be used in service...Ch. 10 - Classifying costs as materials, labor, or factory...Ch. 10 - Classifying costs as materials, labor, or factory...Ch. 10 - Classifying costs as factory overhead Which of the...Ch. 10 - Classifying costs as product or period costs For...Ch. 10 - Prob. 10.5ECh. 10 - Transactions in a job order cost system Five...Ch. 10 - Cost flow relationships The following information...Ch. 10 - Cost of materials issuances An incomplete...Ch. 10 - Recording issuing of materials Materials issued...Ch. 10 - Amounts for materials Big Timber Furniture Company...Ch. 10 - Prob. 10.11ECh. 10 - Recording factory labor costs The weekly time...Ch. 10 - Recording direct labor and factory overhead...Ch. 10 - Factory overhead rates and account balances...Ch. 10 - Predetermined factory overhead rate Novus Engine...Ch. 10 - Predetermined factory overhead rate Mt Ellis...Ch. 10 - Recording jobs completed The following account...Ch. 10 - Determining manufacturing costs Wagner Printing...Ch. 10 - Financial statements of a manufacturing firm The...Ch. 10 - Job order cost accounting entries for a service...Ch. 10 - Prob. 10.21ECh. 10 - Prob. 10.22ECh. 10 - Just-in-time principles Jupiter Shirt Company...Ch. 10 - Activity-based costing for a hospital Deer Lodge...Ch. 10 - Activity-based costing in an insurance company...Ch. 10 - Classifying costs The following is a list of costs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Schedules for unfinished jobs and completed jobs...Ch. 10 - Job cost sheet Hallmark Furniture Company...Ch. 10 - Job cost sheet Hallmark Furniture Company...Ch. 10 - Analyzing manufacturing cost accounts Summer...Ch. 10 - Analyzing manufacturing cost accounts Summer...Ch. 10 - Flow of costs and income statement R-Tunes Inc. is...Ch. 10 - Flow of costs and income statement R-Tunes Inc. is...Ch. 10 - Unit cost analysis The management of Colfax...Ch. 10 - Prob. 10.2MBACh. 10 - Prob. 10.3MBACh. 10 - Prob. 10.4MBACh. 10 - Prob. 10.1CCh. 10 - Prob. 10.2CCh. 10 - Prob. 10.3.1CCh. 10 - Classifying costs Reboot Inc. provides computer...Ch. 10 - Prob. 10.4.1CCh. 10 - Factory overhead rate Fabricator Inc., a...Ch. 10 - Factory overhead rate Fabricator Inc., a...Ch. 10 - Prob. 10.5CCh. 10 - Just-in-time principles Warm Space Inc....
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