Precision Electronics manufactures wearable devices that incorporate Global Positioning System technology. Their devices are used by runners,
Question:
Precision Electronics manufactures wearable devices that incorporate Global Positioning System technology. Their devices are used by runners, cyclists, golfers, hikers, etc. The following are some costs incurred by Precision Electronics:
1. The cost of components used in the devices.
2. Factory heating costs.
3. Factory equipment maintenance costs.
4. Training costs for new administrative employees.
5. The cost of solder used in assembling the devices.
6. The travel costs of the company's Chief Financial Officer.
7. Wages and salaries of factory security personnel.
8. Utility costs for the building used exclusively for administrative personnel.
9. Wages and salaries in the department responsible for customer billing.
10. Depreciation on fitness centre equipment used only by factory employees.
11. Telephone expenses for the manager of the production facility.
12. The costs of shipping devices to customers.
13. The wages of employees who assemble the devices.
14. The Chief Executive Officer's salary.
15. Overtime paid to administrative staff in the accounts payable department.
Required:
Classify the above costs as either product (inventoriable) costs or period (non-inventoriable) costs.
Step by Step Answer:
Managerial Accounting
ISBN: 9781260193275
12th Canadian Edition
Authors: Ray H. Garrison, Alan Webb, Theresa Libby