5. Real estate taxes paid on the factory 1. Plastic boards used to mount chips 2. Advertising costs 3. Factory maintenance workers' salaries 4. Real estate taxes paid on the sales office 6. Factory supervisor salary 7. Depreciation on factory equipment 8. Assembly worker hourly pay to make chips

5. Real estate taxes paid on the factory 1. Plastic boards used to mount chips 2. Advertising costs 3. Factory maintenance workers' salaries 4. Real estate taxes paid on the sales office 6. Factory supervisor salary 7. Depreciation on factory equipment 8. Assembly worker hourly pay to make chips

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following are selected costs of a company that manufactures computer chips. Classify each as either a product cost or a period cost. Then classify each of the product costs as direct material, direct labor, or overhead. 1. Plastic boards used to mount chips 2. Advertising costs 3. Factory maintenance workers’ salaries 4. Real estate taxes paid on the sales office 5. Real estate taxes paid on the factory 6. Factory supervisor salary 7. Depreciation on factory equipment 8. Assembly worker hourly pay to make chips
Various cast associated with the operation of factories are given below: Electricity to run production cost, Rent on factory building Cloth used to make drapes. Production supervisor salary. Wages of labourers assembling a product. Depreciation on air purification equipment used to make furniture. Factory janitorial salaries Tomatoes used in canning fruits. Lubricants for production equipment. Sugar used in soft drink production. Property tax on the factory. Wages for workers painting cars. Depreciation on canteen equipment. Insurance on building used in baking bread for sale. Cost of brakes used in manufacturing automobile. 1 2 3 5 6. 7 8 9. 10 11 12 13 14 15
Listed here are product costs for production of soccer balls. Classify each cost as either direct or indirect. Product Cost 1. Coolants for machinery 2. Wages of product assembly workers 3. Annual flat fee paid for factory security 4. Taxes on factory 5. Machinery depreciation (straight-line) 6. Rubber bladder interior for balls 7. Factory building rent 8. Wages of factory machine operators 9. Wages of factory maintenance workers 10. Factory supervisor salary Direct or Indirect
Question 4 Various cast associated with the operation of factories are given below: Electricity to run production cost, Rent on factory building Cloth used to make drapes. Production supervisor salary. Wages of labourers assembling a product. Depreciation on air purification equipment used to make furniture. Factory janitorial salaries Tomatoes used in canning fruits. Lubricants for production equipment. Sugar used in soft drink production. Property tax on the factory. Wages for workers painting cars. Depreciation on canteen equipment. Insurance on building used in bakıng bread for sale. Cost of brakes used in manufacturing automobile. 3 6. 9 10 11 12 13 14 15 Required: Classify each cost as either variable or fixed with respect to the number of units produced and sold. Also indicate whether each cost is either product cost or period cost. (Fill X in the table given in the answer sheet). a) " The variable cost per unit varies with output, whereas the fixed cost per unit in constant".…
Which of the following would most likely be a period cost? Depreciation on factory lunchroom furniture. Salary of telephone receptionist in the sales office. Salary of a security guard for the factory parking lot. Computer chips used by a computer manufacturer.
Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost 1. Factory supervisors' salaries 2. Heat, water, and power consumed in the factory 3. Materials used for boxing products for shipment overseas. Units are normally boxed. 4. Advertising costs 5. Workers' compensation insurance for factory employee
The following is a list of costs incurred by several manufacturing companies: a. Bonus for vice president of marketing b. Costs of operating a research laboratory c. Cost of unprocessed milk for a dairy d. Depreciation of factory equipment e. Entertainment expenses for sale representatives f. Factory supplies g. First-aid nurse for factory workersh. Health insurance premiums paid for factory workers i. Hourly wages of warehouse laboresrs j. Lumber used by furniture manufacturer k. Maintenance costs for factory equipment l. Microprocessors for a microcomputer manufacturer m. Packing supplies for products sold, which are insignificant to the total cost of the product n. Paper used by commercial printer o. Paper used in processing various managerial reports p. Protective glasses for factory machine operators q. Salaries of quality control personnel r. Sales commissions s. Seed for gain farmer t. Television advertisment u. Prebuilt transmissions for an automobile manufacturer v. Wages of a…
Various costs associated with the operation of factories are given below:1. Electricity to run production equipment.2. Rent on a factory building.3. Cloth used to make drapes.4. Production superintendent’s salary.5. Wages of laborers assembling a product.6. Depreciation of air purification equipment used to make furniture.7. Janitorial salaries.8. Peaches used in canning fruit.9. Lubricants for production equipment.10. Sugar used in soft-drink production.11. Property taxes on the factory.12. Wages of workers painting a product.13. Depreciation on cafeteria equipment.14. Insurance on a building used in producing helicopters.15. Cost of rotor blades used in producing helicopters.Required:Classify each cost as either variable or fixed with respect to the number of units produced and sold. Alsoindicate whether each cost would typically be treated as a direct cost or an indirect cost with respect tounits of product.
Required: Classify the following costs as period or traceable costs. Depreciation on office building Insurance expense for factory building Product liability insurance premium Transportation charges for raw materials Factory repairs and maintenance Rent for inventory warehouse Cost of raw materials Factory wages Salary to chief executive officer Depreciation on factory Bonus to factory workers Salary to marketing staff Administrative expenses Bad debt expense Advertising expense Research and development Warranty expense Electricity for plant
Identify which of the following transactions andevents are product costs and which are period costs:• Office fire insurance.• Cost of electric power.• Rental charges of warehouses.• Costs of basic raw materials used in production.• Depreciation of electrical equipment in the plant.• Depreciation of the furniture in the office.• Sales incentives paid to the sales personnel.• Inspection costs of raw materials.• Direct overhead costs.• Costs of packing materials.• Overtime premiums.
1. Which of the following is not a component of factory overhead? a. Payroll taxes share of the employer b. Payroll taxes share of the employee-laborer c. Indirect labor d. Supervision 2. Which of the following is not a component of factory overhead? Utilities expense b. Depreciation expense c. Accumulated depreciation d. Food purchases by cafeteria service department a. 3. Which of the following is part of a regular year-end adjustment to factory overhead? a. Indirect materials b. Factory supplies c. Loss from reprocessing defective units. d. Deprecation 4. What account is credited at year-end adjusting entry for insurance premiums under the so-called "asset method" of accounting? а. Cash b. Prepaid Insurance c. Factory Overhead Control d. Applied Factory Overhead 5. What account is debited at year-end adjusting entry for insurance premiums under the so-called "expense method" of accounting? a. Applied Factory Overhead b, Factory Overhead Control c. Prepaid Insurance d. Insurance…
Factory overhead includes a.direct materials and direct labor b.indirect materials and direct materials c.factory rent and direct labor d.indirect labor and indirect materials Which of the following is an example of a factory overhead cost? a.insurance premiums on salespersons' automobiles b.factory heating and lighting cost c.president's salary d.repair and maintenance cost on the administrative building If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be A. greater than $500,000 B. equal to $500,000 C. less than $500,000 D. greater than or less than $500,000, depending on the maturity date of the bonds