COST ACCT
FD Edition
ISBN: 9781323843284
Author: Horngren
Publisher: PEARSON
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Chapter 2, Problem 2.33E
Inventoriable costs versus period costs. Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), KitchenAid (a manufacturing-sector company), and HughesNet (a service-sector company):
- a. Cost of phones and computers available for sale in Best Buy’s electronics department
- b. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant
- c.
Depreciation on HughesNet satellite equipment used to provide its services - d. Electricity used to provide lighting for Best Buy’s store aisles
- e. Wages for personnel responsible for quality testing of the KitchenAid products during the assembly process
- f. Salaries of Best Buy’s marketing personnel planning local-newspaper advertising campaigns
- g. Perrier mineral water purchased by HughesNet for consumption by its software engineers
- h. Salaries of HughesNet area sales managers
- i. Depreciation on vehicles used to transport KitchenAid products to retail stores
- 1. Distinguish between manufacturing-, merchandising-, and service-sector companies.
Required
- 2. Distinguish between inventoriable costs and period costs.
- 3. Classify each of the cost items (a−i) as an inventoriable cost or a period cost. Explain your answers.
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Inventoriable costs versus period costs. Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), KitchenAid (a manufacturing-sector company), and HughesNet (a service-sector company):a. Cost of phones and computers available for sale in Best Buy’s electronics departmentb. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plantc. Depreciation on HughesNet satellite equipment used to provide its servicesd. Electricity used to provide lighting for Best Buy’s store aislese. Wages for personnel responsible for quality testing of the KitchenAid products during the assembly processf. Salaries of Best Buy’s marketing personnel planning local-newspaper advertising campaignsg. Perrier mineral water purchased by HughesNet for consumption by its software engineersh. Salaries of HughesNet area sales managersi. Depreciation on vehicles used to transport KitchenAid products to retail…
Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), KitchenAid (a manufacturing-sector company), and HughesNet (a service-sector company):
a. Cost of phones and computers available for sale in Best Buy’s electronics department
b. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant
c. Depreciation on HughesNet satellite equipment used to provide its services
d. Electricity used to provide lighting for Best Buy’s store aisles
e. Wages for personnel responsible for quality testing of the KitchenAid products during the assembly process
f. Salaries of Best Buy’s marketing personnel planning local-newspaper advertising campaigns
g. Perrier mineral water purchased by HughesNet for consumption by its software engineers
h. Salaries of HughesNet area sales managers i. Depreciation on vehicles used to transport KitchenAid products to retail stores
*Classify each of the cost items (a–i) as an…
Which of the following costs would be considered a period rather than a product cost in a manufacturing company?
Manufacturing equipment depreciation.
Property taxes on corporate headquarters.
Direct materials costs.
Electrical costs to light the production facility.
Chapter 2 Solutions
COST ACCT
Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3QCh. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9QCh. 2 - What are three different types of inventory that...
Ch. 2 - Distinguish between inventoriable costs and period...Ch. 2 - Define the following: direct material costs,...Ch. 2 - Describe the overtime-premium and idle-time...Ch. 2 - Define product cost. Describe three different...Ch. 2 - What are three common features of cost accounting...Ch. 2 - Prob. 2.16MCQCh. 2 - Comprehensive Care Nursing Home is required by...Ch. 2 - Frisco Corporation is analyzing its fixed and...Ch. 2 - Year 1 financial data for the ABC Company is as...Ch. 2 - The following information was extracted from the...Ch. 2 - Computing and interpreting manufacturing unit...Ch. 2 - Direct, indirect, fixed, and variable costs....Ch. 2 - Classification of costs, service sector. Market...Ch. 2 - Classification of costs, merchandising sector....Ch. 2 - Classification of costs, manufacturing sector. The...Ch. 2 - Variable costs, fixed costs, total costs. Bridget...Ch. 2 - Variable and Fixed Costs. Consolidated Motors...Ch. 2 - Variable costs, fixed costs, relevant range. Gummy...Ch. 2 - Prob. 2.29ECh. 2 - Cost drivers and functions. The representative...Ch. 2 - Total costs and unit costs, service setting....Ch. 2 - Total and unit cost, decision making. Gayles...Ch. 2 - Inventoriable costs versus period costs. Each of...Ch. 2 - Computing cost of goods purchased and cost of...Ch. 2 - Cost of goods purchased, cost of goods sold, and...Ch. 2 - Flow of Inventoriable Costs. Renkas Heaters...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Interpretation of statements (continuation of...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Terminology, interpretation of statements...Ch. 2 - Labor cost, overtime, and idle time. David...Ch. 2 - Missing records, computing inventory costs. Ron...Ch. 2 - Comprehensive problem on unit costs, product...Ch. 2 - Prob. 2.46PCh. 2 - Cost classification; ethics. Paul Howard, the new...Ch. 2 - Prob. 2.48P
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