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Classifying costs as product or period costs For apparel manufacturer Abercrombie & Fitch, Inc ., classify each of the following costs as either a product cost or a period cost: a. Cost of information technology support for the corporate headquarters b. Depreciation on sewing machines c. Fabric used during production d. Depreciation on office equipment c. Advertising expenses f. Repairs and maintenance costs for sewing machines g. Salary of production quality control supervisor h. Utility costs for office building i. Sales commissions j. Salaries of distribution center personnel k. Wages of sewing machine operators l. Factory janitorial supplies m. Chief financial officer’s salary n. Travel costs of media relations employees o. Factory supervisors’ salaries p. Oil used to lubricate sewing machines q. Property taxes on factory building and equipment

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 18.4EX
Textbook Problem

Classifying costs as product or period costs

For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:

a. Cost of information technology support for the corporate headquarters

b. Depreciation on sewing machines

c. Fabric used during production

d. Depreciation on office equipment

c. Advertising expenses

f. Repairs and maintenance costs for sewing machines

g. Salary of production quality control supervisor

h. Utility costs for office building

i. Sales commissions

j. Salaries of distribution center personnel

k. Wages of sewing machine operators

l. Factory janitorial supplies

m. Chief financial officer’s salary

n. Travel costs of media relations employees

o. Factory supervisors’ salaries

p. Oil used to lubricate sewing machines

q. Property taxes on factory building and equipment

Expert Solution

(a)

To determine

Product costs:

Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials cost, direct labor cost, and factory overhead cost.

Period costs:

Period costs are the costs other than the product costs. These costs are not incurred in manufacturing the goods. These costs include the administrative expenses, and selling expenses.

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Explanation of Solution

Cost of information technology support for the corporate headquarters is the period cost.

The cost of information technology support for the corpor...

Expert Solution

b.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

c.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

d.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

e.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

f.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

g.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

h.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

i.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

j.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

k.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

l.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

m.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

n.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

o.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

p.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

Expert Solution

q.

To determine

To classify: Each of the following costs as either a product cost or a period cost for apparel manufacturer Incorporation A&F.

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Chapter 18 Solutions

Accounting
Show all chapter solutions
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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