Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 1E
Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor
- a. Automobile engine
- b. Brake pads
- c.
Depreciation of robotic assembly line equipment - d. Glass for front and rear windshields
- e. Safety helmets and masks for assembly line workers
- f. Salary of quality control inspector
- g. Steering wheel
- h. Tires
- i. Wages of assembly line workers
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Classifying Costs as Materials, Labor, or Factory Overhead
Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:
Cost
Classification
a. Automobile engine
b. Brake pads
c. Depreciation of robotic assembly line equipment
d. Glass for front and rear windshields
e. Safety helmets and masks for assembly line workers
f. Salary of quality control inspector
g. Steering wheel
h. Tires
i. Wages of assembly line workers
Classifying Costs as Materials, Labor, or Factory Overhead
Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:
Cost
Classification
a. Wheels
b. Glass used in the vehicle’s windshield
c. Wages of assembly line worker
d. V8 automobile engine
e. Depreciation of robotic assembly line equipment
f. Steering wheel
g. Painting safety masks for employees working in the paint room
h. Salary of test driver
Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:
a) Depreciation of robotic assembly line equipment
b) V8 automobile engine
c) Steering wheel
d) Wheels
e) Painting safety masks for employees working in the paint room
f) Salary of test driver
g) Glass used in the vehicle's windshield
h) Wages of assembly line worker
Note: material and labor costs are directs costs that could be easily traced to a product. Factory overhead costs are indirect costs that are not easily traced to a product and are generally used in the manufacturing process.
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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- Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Depreciation of robotic assembly line equipment b. V8 automobile engine c. Steering wheel d. Wheels e. Painting safety masks for employees working in the paint room f. Salary of test driver g. Glass used in the vehicle’s windshield h. Wages of assembly line workerarrow_forwardIndicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:a. Wheelsb. Glass used in the vehicle’s windshieldc. Wages of assembly line workerd. V8 automobile enginee. Depreciation of robotic assembly line equipmentf. Steering wheelg. Painting safety masks for employees working in the paint roomh. Salary of test driverarrow_forwardIdentify the following costs as a product cost or a period cost for an automobile manufacturer:a. Steelb. Wages of employees that operate painting equipmentc. Rent on office buildingd. Sales staff salariesarrow_forward
- Which of the following manufacturing costs is an indirect cost of producing a product? a.commissions for sales personnel b.memory chips for a microcomputer manufacturer c.oil lubricants used for factory machinery d.hourly wages of an assembly workerarrow_forwardIdentify whether the following items should be included in Direct Materials (DM), Direct Labor (DL), Manufacturing Overhead (MO) or Period Costs (PC) (a) Assembly line wages (b) Raw materials used directly in product (c) Depreciation on office equipment (d) Property taxes on factory building (e) Rent on factory building (f) Sales commissions (g) Depreciation on factory equipment (h) Factory utilities (i) Wages for factory maintenance workers 0) Advertising (k) Indirect materials used in production (1) Factory manager's salaryarrow_forwardFor manufacturing firms, inventoriable costs include ________. a. plant supervisor salaries. b. depreciation motor vehicles – sales staff. c. advertising costs. d. distribution costs.arrow_forward
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Cost Classifications - Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=QQd1_gEF1yM;License: Standard Youtube License