Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Classifying Costs The following is a list of costs incurred by several manufacturing companies: Classify each of the following costs as product cost or period
Classifying Costs
The following is a list of costs incurred by several manufacturing companies:
Classify each of the following costs as product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense:
Costs | Classification | Answer |
a. Annual picnic for plant employees and their families | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
b. Cost of fabric used by clothing manufacturer | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
c. Cost of plastic for a toy manufacturer | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
d. Cost of sewing machine needles used by a shirt manufacturer | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
e. Cost of television commercials | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
f. Depreciation of copying machines used by the Marketing Department | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
g. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
h. Depreciation of office building | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
i. Depreciation of robotic equipment used to assemble a product | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
j. Electricity used to operate factory machinery | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
k. Factory janitorial supplies | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
l. Fees charged by collection agency on past-due customer accounts | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
m. Fees paid to lawn service for office grounds | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
n. Maintenance costs for factory equipment | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
o. Oil lubricants for factory plant and equipment | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
p. Pens, paper, and other supplies used by the Accounting Department | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
q. Repair costs for factory equipment | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
r. Rent for a warehouse used to store work in process and finished products | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
s. Salary of a physical therapist who treats plant employees | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
t. Salary of the manager of a manufacturing plant | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
u. Telephone charges by corporate office | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
v. Travel costs of marketing executives to annual sales meeting | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
w. Wages of a machine operator on the production line | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense | |
x. Wages of production quality control personnel | A.Product costs-direct materials cost B.Product costs-direct labor cost C.Product costs-factory overhead cost D.Period costs-selling expense E.Period costs-administrative expense |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started