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DeVry University ACCT346 Weekly Assignment Week 1 Directions: Your assignment this week is to answer the four questions below. Please note that Question 4 contains
DeVry University | |||||||
ACCT346 Weekly Assignment | |||||||
Week 1 | |||||||
Directions: Your assignment this week is to answer the four questions below. Please note that Question 4 contains multiple parts. Please show your work for full credit on Questions 4b - 4e. | |||||||
1. Identify whether each of the items below is a Product Cost or Period Cost: (1/2 point each, total 5 points) | |||||||
Factory insurance | Product | ||||||
Interest on bank loan | |||||||
Eggs, salt, water used for baking | |||||||
Depreciation on bake ovens | |||||||
Paper wrappers for bread | |||||||
Delivery truck costs | |||||||
Advertising costs | |||||||
Factory supervisor salaries | |||||||
Sales Commissions | |||||||
Flour used in baking bread | |||||||
2. Identify whether each of the items below is a Direct Cost or Indirect Cost: (1/2 point each, total 5 points) | |||||||
Factory insurance | Indirect | ||||||
Baker's wages | |||||||
Eggs used for baking | |||||||
Depreciation on bake ovens | |||||||
Paper wrappers for bread | |||||||
Cleaning materials for bake ovens | |||||||
Utilities used in factory | |||||||
Factory supervisor salaries | |||||||
Small amount of salt used | |||||||
Flour used in baking bread | |||||||
3. Identify whether each of the below is a Fixed Cost or Variable Cost: (1/2 point each, total 5 points) | |||||||
Shipping costs for bread | Variable | ||||||
Cost of fuel for delivery truck | |||||||
Factory rent | |||||||
Factory insurance | |||||||
Maintenance on delivery truck | |||||||
Sales commissions | |||||||
Hourly wages paid to baker's assistant | |||||||
Oven depreciation | |||||||
Cost of fruit for cake topping | |||||||
Factory utilities | |||||||
4. Classify each as direct material, direct labor, indirect labor, indirect labor, other manufacturing overhead or period cost, and then answer the 5 questions below: | 4a. Classify each cost (the first one is done for you): (5 points total) | ||||||
An airline manufacturer incurred the following costs last month (in thousands of dollars): | Direct Material | Direct Labor | Indirect Material | Indirect Labor | Other Manufacturing Overhead | Period Cost | |
a. Depreciation on forklifts ........................................................................... | $60 | $60 | |||||
b. Property tax on corporate marketing office ............................................. | $30 | ||||||
c. Cost of warranty repairs ............................................................................ | $220 | ||||||
d. Factory janitors |
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