Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cambridge IGCSE And O Level Accounting Coursebook

Authors: Catherine Coucom

2nd Edition

1316502775, 978-1316502778

More Books

Students also viewed these Accounting questions

Question

3. To retrieve information from memory.

Answered: 1 week ago

Question

2. Value-oriented information and

Answered: 1 week ago

Question

1. Empirical or factual information,

Answered: 1 week ago