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Classifying costs 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 buildings b. Tires for lawn mowers c. Filter for spray gun used to paint the lawn mowers d. Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final product e. Plastic for outside housing of lawn mowers f. Salary of factory supervisor g. Hourly wages of operators of robotic machinery used in production h. Engine oil used in mower engines prior to shipment i. Salary of vice president of marketing j. Property taxes on the factory building and equipment k. Cost of advertising in a national magazine l. Gasoline engines installed in the lawn mowers m. Electricity used to run the robotic machinery n. Straight-line depreciation on the robotic machinery used to manufacture the lawn mowers o. Salary of quality control supervisor who inspects each lawn mower before it is shipped p. Attorney fees for drafting a new lease for headquarters offices q. Payroll taxes on hourly assembly line employees r. Telephone charges for company controller’s office s. Steering wheels for lawn mowers t. Factory’ cafeteria cashier’s wages u. Cash paid to outside firm for janitorial services for factory v. Maintenance costs for new robotic factory equipment, based on hours of usage w. Cost of boxes used in packaging lawn mowers, which are a significant portion of the total product cost x. License fees for use of patent for lawn mower blade, based on the number of lawn mowers produced y. Steel used in producing the lawn mowers z. Commissions paid to sales representatives, based on the number of lawn mowers sold 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 factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an “ X” in the appropriate column:

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 18, Problem 18.1BPR
Textbook Problem

Classifying costs

The following is a list of costs that were incurred in the production and sale of lawn mowers:

  1. a. Premiums on insurance policy for factory buildings
  2. b. Tires for lawn mowers
  3. c. Filter for spray gun used to paint the lawn mowers
  4. d. Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final product
  5. e. Plastic for outside housing of lawn mowers
  6. f. Salary of factory supervisor
  7. g. Hourly wages of operators of robotic machinery used in production
  8. h. Engine oil used in mower engines prior to shipment
  9. i. Salary of vice president of marketing
  10. j. Property taxes on the factory building and equipment
  11. k. Cost of advertising in a national magazine
  12. l. Gasoline engines installed in the lawn mowers
  13. m. Electricity used to run the robotic machinery
  14. n. Straight-line depreciation on the robotic machinery used to manufacture the lawn mowers
  15. o. Salary of quality control supervisor who inspects each lawn mower before it is shipped
  16. p. Attorney fees for drafting a new lease for headquarters offices
  17. q. Payroll taxes on hourly assembly line employees
  18. r. Telephone charges for company controller’s office
  19. s. Steering wheels for lawn mowers
  20. t. Factory’ cafeteria cashier’s wages
  21. u. Cash paid to outside firm for janitorial services for factory
  22. v. Maintenance costs for new robotic factory equipment, based on hours of usage
  23. w. Cost of boxes used in packaging lawn mowers, which are a significant portion of the total product cost
  24. x. License fees for use of patent for lawn mower blade, based on the number of lawn mowers produced
  25. y. Steel used in producing the lawn mowers
  26. z. Commissions paid to sales representatives, based on the number of lawn mowers sold 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 factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an X” in the appropriate column:

Chapter 18, Problem 18.1BPR, Classifying costs The following is a list of costs that were incurred in the production and sale of

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Chapter 18 Solutions

Accounting
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Ch. 18 - Management process Three phases of the management...Ch. 18 - Management process Three phases of the management...Ch. 18 - Direct materials, direct labor, and factory...Ch. 18 - Direct materials, direct labor, and factory...Ch. 18 - Prime and conversion costs Identify the following...Ch. 18 - Prime and conversion costs Identify the following...Ch. 18 - Product and period costs Identify the following...Ch. 18 - Product and period costs Identify the following...Ch. 18 - Cost of goods sold, cost of goods manufactured...Ch. 18 - Cost of goods sold, cost of goods manufactured...Ch. 18 - Classifying costs as materials, labor, or factory...Ch. 18 - Classifying costs as materials, labor, or factory...Ch. 18 - Classifying costs as factory overhead Which of the...Ch. 18 - Classifying costs as product or period costs For...Ch. 18 - Concepts and terminology From the choices...Ch. 18 - Concepts and terminology From the choices...Ch. 18 - Classifying costs in a service company A partial...Ch. 18 - Sustainability and eco-efficiency measures Four...Ch. 18 - Classifying costs The following report was...Ch. 18 - Financial statements of a manufacturing firm The...Ch. 18 - Manufacturing company balance sheet Partial...Ch. 18 - Cost of direct materials used in production for a...Ch. 18 - Cost of goods manufactured for a manufacturing...Ch. 18 - Cost of goods manufactured for a manufacturing...Ch. 18 - Income statement for a manufacturing company Two...Ch. 18 - Statement of cost of goods manufactured for a...Ch. 18 - Cost of goods sold, profit margin, and net income...Ch. 18 - Cost flow relationships The following information...Ch. 18 - Uses of managerial accounting in a service company...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Cost classifications for a service company A...Ch. 18 - Manufacturing income statement, statement of cost...Ch. 18 - Statement of cost of goods manufactured and income...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Cost classifications for a service company A...Ch. 18 - Manufacturing income statement, statement of cost...Ch. 18 - Statement of cost of goods manufactured and income...Ch. 18 - Ethics in Action Avett Manufacturing Company...Ch. 18 - Communication Todd Johnson is the vice president...Ch. 18 - Managerial accounting in the management process...Ch. 18 - Classifying costs Geek Gut Company provides...Ch. 18 - Using managerial accounting Information The...

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