Question
Classifying A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.Costs The following is a list
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Classifying A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.Costs
The following is a list of costs that were incurred in the production and sale of large commercial airplanes:
Classify each cost as either a The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.product cost or a Those costs that are used up in generating revenue during the current period and that are not involved in manufacturing a product, such as selling, general, and administrative expenses.period cost. Indicate whether each product cost is a The cost of materials that are an integral part of the finished product.direct materials cost, a The wages of factory workers who are directly involved in converting materials into a finished product.direct labor cost, or a All of the costs of producing a product except for direct materials and direct labor.factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense.
Costs Classification a. Salary of chief compliance officer of company - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
b. Power used by painting equipment - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
c. Instrument panel installed in the airplane cockpit - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
d. Annual bonus paid to the chief operating officer of the company - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
e. Turbo-charged airplane engine - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
f. Interior trim material used throughout the airplane cabin - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
g. Cost of normal scrap from production of airplane body - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
h. Hourly wages of employees that assemble the airplane - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
i. Salary of the marketing department personnel - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
j. Cost of paving the headquarters employee parking lot - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
k. Cost of electrical wiring throughout the airplane - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
l. Cost of electronic guidance system installed in the airplane cockpit - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
m. Salary of plant manager - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
n. Cost of miniature replicas of the airplane used to promote and market the airplane - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
o. Human resources department costs for the year - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
p. Metal used for producing the airplane body - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
q. Annual fee to a celebrity to promote the aircraft - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
r. Hydraulic pumps used in the airplanes flight control system - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
s. Yearly cost of the maintenance contract for robotic equipment - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
t. Prebuilt leather seats installed in the first-class cabin - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
u. Depreciation on factory equipment - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
v. Special advertising campaign in Aviation World magazine - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
w. Oil to lubricate factory equipment - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
x. Masks for use by painters in painting the airplane body - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
y. Decals for cockpit door, the cost of which is immaterial to the cost of the final product - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
z. Salary of chief financial officer - Product costs-direct materials cost
- Product costs-direct labor cost
- Product costs-factory overhead cost
- Period costs-selling expense
- Period costs-administrative expense
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-
-
Classifying A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.Costs
The following is a list of costs that were incurred in the production and sale of large commercial airplanes:
Classify each cost as either a The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.product cost or a Those costs that are used up in generating revenue during the current period and that are not involved in manufacturing a product, such as selling, general, and administrative expenses.period cost. Indicate whether each product cost is a The cost of materials that are an integral part of the finished product.direct materials cost, a The wages of factory workers who are directly involved in converting materials into a finished product.direct labor cost, or a All of the costs of producing a product except for direct materials and direct labor.factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense.
Costs | Classification |
a. Salary of chief compliance officer of company |
|
b. Power used by painting equipment |
|
c. Instrument panel installed in the airplane cockpit |
|
d. Annual bonus paid to the chief operating officer of the company |
|
e. Turbo-charged airplane engine |
|
f. Interior trim material used throughout the airplane cabin |
|
g. Cost of normal scrap from production of airplane body |
|
h. Hourly wages of employees that assemble the airplane |
|
i. Salary of the marketing department personnel |
|
j. Cost of paving the headquarters employee parking lot |
|
k. Cost of electrical wiring throughout the airplane |
|
l. Cost of electronic guidance system installed in the airplane cockpit |
|
m. Salary of plant manager |
|
n. Cost of miniature replicas of the airplane used to promote and market the airplane |
|
o. Human resources department costs for the year |
|
p. Metal used for producing the airplane body |
|
q. Annual fee to a celebrity to promote the aircraft |
|
r. Hydraulic pumps used in the airplanes flight control system |
|
s. Yearly cost of the maintenance contract for robotic equipment |
|
t. Prebuilt leather seats installed in the first-class cabin |
|
u. Depreciation on factory equipment |
|
v. Special advertising campaign in Aviation World magazine |
|
w. Oil to lubricate factory equipment |
|
x. Masks for use by painters in painting the airplane body |
|
y. Decals for cockpit door, the cost of which is immaterial to the cost of the final product |
|
z. Salary of chief financial officer |
|
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