Only EX 15-4 C.Dealership sales incentivesd. Depreciation on headquarters building in Dearborn, Michigane. Depreciation on mechanical robots used on the assembly lineLeather to be used on vehicles that have leather interiorsf.g. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly planth. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subesseinbliesi. Property taxes on the Dearborn, Michigan, headquarters buildingVice president of human resource's salaryj.EX 15-4 Classifying costs as product or period costsObj. 2For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify eacih of the followingcosts as either a product cost or a period cost:REAL WORLDa. Advertising expensesb. Chief financial officer's salaryc. Depreciation on office equipmentd. Depreciation on sewing machinese. Fabric used during productionf. Factory janitorial suppliesg. Factory supervisors' salariesh. Property taxes on factory building and equipmenti.Oil used to lubricate sewing machinesj. Repairs and maintenance costs for sewing machinesk. Research and development costs1.Sales commissionsm. Salaries of distribution center personneln. Salaries of production quality control supervisorso. Travel costs of media relations employeesp. Utility costs for office buildingq. Wages of sewing machine operatorsEX 15-5 Concepts and terminologyObj. 1, 2

Product costs would be those directly associated with the manufacturing of a for-sale service or…

For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officer's salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors' salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines for cowing machines

For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officer's salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors' salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines for cowing machines

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 1PB: The following is a list of costs that were incurred in the production and sale of lawn mowers: a....

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: State with reasons whether following Expenses/ Receipts of a Foam manufacturing factory are of Capital or Revenue nature; 1) Rent paid in advance to owners of building 2) Carriage expenses paid to suppliers 3)Purchases new supply trucks 4) Replacement of old machinery with new ones 5) Commission paid to marketing agents
23. Which of the following costs is relevant to a make-or-buy decision of a particular part of a product? a.The direct labor costs used to manufacture the part b.The depreciation on the plant used to manufacture the part c.The fixed annual rent paid for the office building d.The salary of the sales manager who sells the product
Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation, a manufacturer of recreational vehicles.____ 1. Property taxes on the factory land____ 2. Nails and glue used in production____ 3. Cabinet maker's wages____ 4. Factory supervisors' salaries____ 5. Metal used in manufacturing____ 6. Depreciation on factory machines____ 7. Factory utilities____ 8. Carpeting for the recreational vehicles____ 9. Property taxes on the factory building____ 10. Insurance on factory equipmentInstructionsClassify the above items into the following categories:DM — Direct MaterialsDL — Direct LaborMO — Manufacturing Overhead
Classify each of the following costs as manufacturing or non manufacturing: 1. Factory rental 2. Interest on bank overdraft 3. Depreciation on warehouse equipment 4. Salary and bonus for the chief accountant 5. Wages of security guards in factory 6. Advertising 7. Property taxes on corporate headquarters building 8. Gas and electricity for the factory 9. Carriage on purchase of raw materials 10. Operators of product help lines for customers
The following is a list of costs incurred by several manufacturing companies:a. Annual picnic for plant employees and their familiesb. Cost of fabric used by clothing manufacturerc. Cost of plastic for a toy manufacturerd. Cost of sewing machine needles used by a shirt manufacturere. Cost of television commercialsf. Depreciation of copying machines used by the Marketing Departmentg. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedulesh. Depreciation of office buildingi. Depreciation of robotic equipment used to assemble a productj. Electricity used to operate factory machineryk. Factory janitorial suppliesI. Fees charged by collection agency on past-due customer accountsm. Fees paid to lawn service for office groundsn. Maintenance costs for factory equipment o. Oil lubricants for factory plant and equipmentp. Pens, paper, and other supplies used by the Accounting Departmentq. Repair costs for factory equipmentr. Rent for a warehouse used…
The following is a list of costs that were incurred in the production and sale of lawn mowers: a. Attorney fees for drafting a new lease for headquarter offices b. Cash paid to outside firm for janitorial services for factory c. Commissions paid to sales representatives, based on the number of lawn mowers sold d. Cost of advertising in a national magazine e. Cost of boxes used in packaging lawn mowers f. Electricity used to run the robotic machinery g. Engine oil used in mower engines prior to shipment h. Factory cafeteria employees wages i. Filter for spray gun used to paint the lawn mowers j. Gasoline engines used for lawn mowers k. Hourly wages of operators of robotic machinery used in production l. License fees for use of patent for lawn mower blade, based on the number of lawn mowers produced m. Maintenance costs for new robotic factory equipment, based on hours of usage n. Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final product o. Payroll taxes on hourly assembly line employees p. Plastic for outside housing of lawn mowers q. Premiums on insurance policy for factory buildings r. Property taxes on the factory building and equipment s. Salary of factory supervisor t. Salary of quality control supervisor who inspects each lawn mower before it is shipped u. Salary of vice president of marketing v. Steel used in producing the lawn mowers w. Steering wheels for lawn mowers x. Straight-line depreciation on the robotic machinery used to manufacture the lawn mowers y. Telephone charges for company controllers office z. Tires for lawn mowers Instructions Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an X in the appropriate column:
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The following is a list of costs incurred by several businesses:a. Cost of fabric used by clothing manufacturerb. Maintenance and repair costs for factory equipmentc. Rent for a warehouse used to store raw materials and work in processd. Wages of production quality control personnele. Oil lubricants for factory plant and equipmentf. Depreciation of robot used to assemble a productg. Travel costs of marketing executives to annual sales meetingh. Depreciation of copying machines used by the Marketing Departmenti. Fees charged by collection agency on past-due customer accountsj. Electricity used to operate factory machineryk. Maintenance costs for factory equipmentl. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reportsm. Charitable contribution to United Fundn. Depreciation of microcomputers used in the factory to coordinate and monitor the production scheduleso. Fees paid to lawn service for office grounds upkeepp. Cost of sewing…
organization. 47. Which of the following is an example of a direct cost an organization might incur in producing a product? a. The cost of the raw materials that go into the product b. The rent paid the facility where the product is produced The utility bills, such as the cost of electricity and water d. The wages paid to employees c. futuror opened an automotive assembly plant in San
Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost:a. Resins for body wash productsb. Scents and fragrances used in making soaps and detergentsc. Plant manager salary for the Iowa City, Iowa, plantd. Depreciation on the Auburn, Maine, manufacturing plante. Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plantf. Maintenance suppliesg. Packaging materials, which are a significant portion of the total product costh. Wages of production line employees at the Pineville, Louisiana, soap and detergent planti. Wages paid to Packaging Department employees in the Bear River City, Utah, paper products plantj. Salary of process engineers
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