Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 16, Problem 26AP
Lawlor, Inc. is the manufacturer of lawn care equipment. The company incurs the following costs while manufacturing weed trimmers:
- Shaft and handle of weed trimmer
- Motor of weed trimmer
- Factory labor for workers assembling weed trimmers
- Nylon thread used by the weed trimmer (not traced to the product)
- Glue to hold the housing together
- Plant janitorial wages
Depreciation on factory equipment- Rent on plant
- Sales commissions
- Administrative salaries
- Plant utilities
- Shipping costs to deliver finished weed trimmers to customers
Requirements
- 1. Describe the difference between period costs and product costs.
- 2. Classify Lawlor’s costs as period costs or product costs. If the costs are product costs, further classify them as direct materials, direct labor, or manufacturing
overhead.
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The following is a list of costs that were incurred in the production and sale of lawn mowers:a. Premiums on insurance policy for factory buildingsb. Tires for lawn mowersc. Filter for spray gun used to paint the lawn mowersd. Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final producte. Plastic for outside housing of lawn mowersf. Salary of factory supervisorg. Hourly wages of operators of robotic machinery used in productionh. Engine oil used in mower engines prior to shipmenti. Salary of vice president of marketingj. Property taxes on the factory building and equipmentk. Cost of advertising in a national magazinel. Gasoline engines installed in the lawn mowersm. Electricity used to run the robotic machineryn. Straight-line depreciation on the robotic machinery used to manufacture the lawn mowerso. Salary of quality control supervisor who inspects each lawn mower before it is shippedp. Attorney fees for drafting a new lease for headquarters…
Classifying period costs and product costs
Lawlor, Inc. is the manufacturer of lawn care equipment. The company incurs the following costs while manufacturing weed trimmers:
• Shaft and handle of weed trimmer
• Motor of weed trimmer
• Factory labor for workers assembling weed trimmers
• Nylon thread used by the weed trimmer (not traced to the product)
• Glue to hold the housing together
• Plant janitorial wages
• Depreciation on factory equipment
• Rent on plant
• Sales commissions
• Administrative salaries
• Plant utilities
• Shipping costs to deliver finished weed trimmers to customers
Requirements
1. Describe the difference between period costs and product costs.
2. Classify Lawlor’s costs as period costs or product costs. If the costs are product costs, further classify them as direct materials, direct labor, or manufacturing overhead.
Classifying period costs and product costs Lawlor, Inc. is the manufacturer of lawn care equipment. The company incurs the following costs while manufacturing weed trimmers:
Shaft and handle of weed trimmer
The motor of weed trimmer
Factory labor for workers assembling weed trimmers
Nylon thread used by the weed trimmer (not traced to the product)
Glue to hold the housing together
Plant janitorial wages
Depreciation on factory equipment
Rent on plant
Sales commissions
Administrative salaries
Plant utilities
Shipping costs to deliver finished weed trimmers to customers
Requirements
Describe the difference between period costs and product costs.
Classify Lawlor’s costs as period costs or product costs. If the costs are product costs, further classify them as direct materials, direct labor, or manufacturing overhead.
Chapter 16 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Identify the following characteristics as...Ch. 16 - Prob. 6TICh. 16 - Prob. 7TICh. 16 - Prob. 8TICh. 16 - Identify each cost as a period cost or a product...Ch. 16 - Identify each cost as a period cost or a product...
Ch. 16 - Prob. 11TICh. 16 - ABC Manufacturing Company has the following data...Ch. 16 - Prob. 13TICh. 16 - Match the definition to the key term. Value chain...Ch. 16 - Match the definition to the key term. 13. Triple...Ch. 16 - Prob. 16TICh. 16 - Prob. 17TICh. 16 - Prob. 18TICh. 16 - Prob. 1QCCh. 16 - Prob. 2QCCh. 16 - Dunaway Company reports the following costs for...Ch. 16 - Which of the following is a direct cost of...Ch. 16 - Which of the following is not part of...Ch. 16 - Prob. 6QCCh. 16 - Suppose a bakery reports the following...Ch. 16 - What is the cost of goods manufactured? a. 151,000...Ch. 16 - World-class businesses use which of these systems...Ch. 16 - Todays business environment is characterized by a....Ch. 16 - Prob. 1RQCh. 16 - List six differences between financial accounting...Ch. 16 - Explain the difference between line positions and...Ch. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Describe a service company, and give an example.Ch. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Explain the difference between a direct cost and...Ch. 16 - What are the three manufacturing costs for a...Ch. 16 - Give five examples of manufacturing overhead.Ch. 16 - What are prime costs? Conversion costs?Ch. 16 - What are product costs?Ch. 16 - How do period costs differ from product costs?Ch. 16 - How is cost of goods manufactured calculated?Ch. 16 - Prob. 17RQCh. 16 - Prob. 18RQCh. 16 - How does a service company calculate unit cost per...Ch. 16 - Prob. 20RQCh. 16 - Prob. 1SECh. 16 - Prob. 2SECh. 16 - Granger Cards is a manufacturer of greeting cards....Ch. 16 - Computing manufacturing overhead Sunglasses...Ch. 16 - Identifying product costs and period costs...Ch. 16 - Use the following information for The Windshield...Ch. 16 - Prob. 7SECh. 16 - Computing direct materials used Tuscany, Inc. has...Ch. 16 - Computing cost of goods manufactured Use the...Ch. 16 - Use the following information to calculate the...Ch. 16 - Match the term with the correct definition. 1. A...Ch. 16 - Marx and Tyler provides hair-cutting services in...Ch. 16 - Comparing managerial accounting and financial...Ch. 16 - Prob. 14ECh. 16 - Wheels, Inc. manufactures wheels for bicycles,...Ch. 16 - Identifying differences between service,...Ch. 16 - Prob. 17ECh. 16 - Selected data for three companies are given below....Ch. 16 - Computing cost of goods manufactured Consider the...Ch. 16 - Wilson Corp., a lamp manufacturer, provided the...Ch. 16 - Computing cost of goods manufactured and cost of...Ch. 16 - Match the following terms to the appropriate...Ch. 16 - Buddy Grooming provides grooming services for...Ch. 16 - Conway Brush Company sells standard hair brushes....Ch. 16 - Natalia Wallace is the new controller for Smart...Ch. 16 - Lawlor, Inc. is the manufacturer of lawn care...Ch. 16 - Prob. 27APCh. 16 - Gourmet Bones manufactures its own brand of pet...Ch. 16 - Preparing a schedule of cost of goods manufactured...Ch. 16 - Root Shoe Company makes loafers. During the most...Ch. 16 - The Windshield Doctors repair chips in car...Ch. 16 - Prob. 32APCh. 16 - Ava Borzi is the new controller for Halo Software,...Ch. 16 - Langley, Inc. is the manufacturer of lawn care...Ch. 16 - Below are data for two companies: Requirements 1....Ch. 16 - Chewy Bones manufactures its own brand of pet chew...Ch. 16 - Prob. 37BPCh. 16 - True Fit Shoe Company makes loafers. During the...Ch. 16 - The Glass Doctors repair chips in car windshields....Ch. 16 - Prob. 40BPCh. 16 - This is the first problem in a sequence of...Ch. 16 - Winnebago Industries, Inc. is a leading...Ch. 16 - Prob. 1DCCh. 16 - Prob. 1EICh. 16 - In 100 words or fewer, explain the difference...
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