Chapter $2$ Homework

Sales revenue

Straight$-$line depreciation on office equipment

Advertising and marketing expense

Administrative salaries

Cost of goods sold

Rent on corporate headquarters

$\backslash$table$[[$$$3,100,000,$PB$1)],[90,000,$Hicks$],[625,000,$HiCk$],[136,000,],[1,700,000,],[65,000,]]$

Products produces and sells patio furniture through a national dealership network. They purchase raw materials from a variety of suppliers and all manufacturing, and assembly work is performed at their plant outside of Cleveland, Ohio. They recorded these costs for the year ending December $31,2017.$ Construct an income statement for Hicks Products, to reflect their net income for $2017.$

$2.($PA$4)$ Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and$/$or period cost.

a$.$ Wages of administrative staff

b$.$ Shipping costs on merchandise sold

c$.$ Wages of workers assembling computers

d$.$ Cost of lease on factory equipment

e$.$ Insurance on factory

$(1)$ Switch To Light Mode

f$.$ Direct materials used in production of lamps

g$.$ Supervisor salary, factory

h$.$ Advertising costs

i$.$ Property taxes, factory

j$.$ Health insurance cost for company executives

k$.$ Rent on factory

$3.($EB$8)$ Suppose that a company has fixed costs of $$11$ per unit and variable costs $$6$ per unit when $11,000$ units are produced. What are the fixed costs per unit when $20,000$ units are produced?

$4.($PA$5)$ Wachowski Company reported these cost data for the year $2017.$

Factory maintenance costs

Direct labor, wages

Direct labor, health insurance

Indirect labor, health insurance

Health insurance for production supervisor

Administrative costs

Rental of office space for administrative staff

Sales commissions

Direct material

Indirect materials

Advertising expense

Depreciation on factory building

Indirect labor, wages

Production supervisor's salary

$\backslash$table$[[$$$90,000$