Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 10, Problem 2E
Exercise 1-2A Identifying product versus selling, general, and administrative (SG&A) costs
Required
Indicate whether each of the following costs should be classified as a product cost or as an SG&A cost in accordance with GAAP:
a. Direct materials used in a manufacturing company.
b. Indirect materials used in a manufacturing company.
c. Salaries of employees working in the accounting department.
d. Commissions paid to sales staff.
e. Interest on the mortgage for the company’s corporate headquarters.
f. Indirect labor used to manufacture inventory.
g. Attorney’s fees paid to protect the company from frivolous lawsuits.
h. Research and development costs incurred to create new drugs for a pharmaceutical company.
i. The cost of secretarial supplies used in a doctor’s office.
j. Depreciation on the office furniture of the company president.
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Students have asked these similar questions
The income statement for both a merchandiser and a manufacturer would include
Oa. direct labor incurred
Ob. direct materials
Oc. operating expenses
Od. cost of goods manufactured
QUESTION 5
Indicate whether each of the following costs incurred by a manufacturer would be considered a Product Cost or a Period Cost. If the cost is identified as a Product Cost,
indicate whether it would be considered Direct Material, Direct Labor, or Manufacutring Overhead (MOH).
The salary of the accounting manager
A. Product - Direct Labor
The wages of the assembly workers assembling tables
B. Period
The production supervisor's salary
C. Product - Direct Materials
D. Product - MOH
QUESTION 4
Indicate whether each of the following costs incurred by a manufacture would be considered an
(Inventoriable) Product Cost or a Period Cost. If the cost is identified as a Product costs, indicate
whether it would be considered Direct Material, Direct Labor, or Manufacutring Overhead (MOH).
А.
Product - MOH
The cost to deliver finished product to
customers
В.
Period
The insurance costs for the factory building
C. Product - Direct Materials
The wages of the assembly workers
D. Product - Direct Labor
Chapter 10 Solutions
Survey Of Accounting
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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