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The following is a list of costs that were incurred in producing a textbook. Please indicate whether each cost is: (a) a product or period
The following is a list of costs that were incurred in producing a textbook. Please indicate whether
each cost is: (a) a product or period cost, and
(b) if it is a product cost, whether it is a direct material, direct labor, or factory overhead cost.
- (a) Insurance on the factory building and equipment
- (b) Salary of the vice president of finance
- (c) Hourly wages of printing press operators during production
- (d) Straight-line depreciation on the printing presses used to manufacture the textbook
- (e) Straight-line depreciation on the office building
- (f) Electricity used to run the presses during the printing of the textbook
- (g) Sales commissions paid to textbook representatives for each textbook sold
- (h) Paper on which the textbook is printed
- (i) Book covers used to bind the pages
- (j) Salaries of staff used to develop artwork for the textbook
- (k) Glue used to bind pages to cover
- (l) Salary of quality control supervisor who inspects each textbook before it is shipped
- (m) Plant managers salary
- (n) Maintenance supplies
- (o) Property taxes on the headquarters building
- (p) Factory supervisors salaries
- (q) Travel costs of marketing executives to annual sales meeting
- (r) Supplies used by the Accounting Department in preparing various managerial reports
- (s) Fees paid to lawn service for office grounds upkeep
- (t) Cost for marketing at a national conference
- (u) Attorney fees for drafting a new lease for headquarters offices
- (v) License fees for use of patent for printing press, based on number of textbooks produced
The following is a list of costs that were incurred in producing a textbook. Please indicate whether
each cost is: (a) a product or period cost, and
(b) if it is a product cost, whether it is a direct material, direct labor, or factory overhead cost.
- (a) Insurance on the factory building and equipment
- (b) Salary of the vice president of finance
- (c) Hourly wages of printing press operators during production
- (d) Straight-line depreciation on the printing presses used to manufacture the textbook
- (e) Straight-line depreciation on the office building
- (f) Electricity used to run the presses during the printing of the textbook
- (g) Sales commissions paid to textbook representatives for each textbook sold
- (h) Paper on which the textbook is printed
- (i) Book covers used to bind the pages
- (j) Salaries of staff used to develop artwork for the textbook
- (k) Glue used to bind pages to cover
- (l) Salary of quality control supervisor who inspects each textbook before it is shipped
- (m) Plant managers salary
- (n) Maintenance supplies
- (o) Property taxes on the headquarters building
- (p) Factory supervisors salaries
- (q) Travel costs of marketing executives to annual sales meeting
- (r) Supplies used by the Accounting Department in preparing various managerial reports
- (s) Fees paid to lawn service for office grounds upkeep
- (t) Cost for marketing at a national conference
- (u) Attorney fees for drafting a new lease for headquarters offices
- (v) License fees for use of patent for printing press, based on number of textbooks produced
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