Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. Cost Classifications Variable Fixed Period Product Administrative Selling Manufacturing Research and Development Direct material Direct labor Manufacturing overhead Cost Items: Cost of fabric used in T-shirts Wages of shirtmakers Cost of new sign in front of retail T-shirt shop Wages of employee who repairs the firms sewing machines Cost of electricity used in the sewing department Wages of T-shirt designers and painters Wages of sales personnel Depreciation on sewing machines Rent on the building that is used to make and paint T-shirts Cost of daily advertisements in local media Wages of designers who experiment with new fabrics, paints and T-shirt designs Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop. Salary of the owner’s secretary Cost of repairing the gas furnace Cost of insurance for the production employees
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. Cost Classifications Variable Fixed Period Product Administrative Selling Manufacturing Research and Development Direct material Direct labor Manufacturing overhead Cost Items: Cost of fabric used in T-shirts Wages of shirtmakers Cost of new sign in front of retail T-shirt shop Wages of employee who repairs the firms sewing machines Cost of electricity used in the sewing department Wages of T-shirt designers and painters Wages of sales personnel Depreciation on sewing machines Rent on the building that is used to make and paint T-shirts Cost of daily advertisements in local media Wages of designers who experiment with new fabrics, paints and T-shirt designs Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop. Salary of the owner’s secretary Cost of repairing the gas furnace Cost of insurance for the production employees
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3EB: The table shows a list of expenses involved in the production of custom snowboard bindings. For each...
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Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item.
Cost Classifications
- Variable
- Fixed
- Period
- Product
- Administrative
- Selling
- Manufacturing
- Research and Development
- Direct material
- Direct labor
- Manufacturing overhead
Cost Items:
- Cost of fabric used in T-shirts
- Wages of shirtmakers
- Cost of new sign in front of retail T-shirt shop
- Wages of employee who repairs the firms sewing machines
- Cost of electricity used in the sewing department
- Wages of T-shirt designers and painters
- Wages of sales personnel
- Depreciation on sewing machines
- Rent on the building that is used to make and paint T-shirts
- Cost of daily advertisements in local media
- Wages of designers who experiment with new fabrics, paints and T-shirt designs
- Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop.
- Salary of the owner’s secretary
- Cost of repairing the gas furnace
Cost of insurance for the production employees
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