Chapter 17, Problem 2SE

Below is a table showing the various costs incurred by various companies. In each column, indicate the proper classification of these costs. Write NA if not applicable. Cost Manufacturing/Product (M) or Non-Manufacturing/Period (NM) Direct Materials (DM), Direct Labor (DL) or Factory Overhead (FOH) General and Administrative (GA) or Marketing and Selling (MS) g. Maintenance cost of the production equipment       h. Advertising and promotion expense       i. Shipping cost of product sold       j. Salaries of plant supervisor       k. Interest on bank loan       l. Property tax on the production plant       m. Commissions paid to sales personnel       n. Salaries of the executive staff       o. Car leases for sales agents       p. Electricity to run machineries in a lumber yard       q. Food for company banquet       r. Sugar in a bakeshop       s. Chips…

This assignment is centred on the topic "Cost Classification", which is covered in Unit 2 and speaks to the following course objectives. Course Objectives: ) Distinguish between manufacturing & non-manufacturing overhead (product versus partad costs) 2) Classify costs as prime costs or conveTsion costs 3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for. ) Prepare an income statement for a manufacturing entity, clearly showing cost of goods sold. 5) Explain the difference between product costs and period costs of a merchandiser &a manufacturer

Can you please help me solve all 5 parts of this question using the following using the images provided:  1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost?  2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost?  b. What is the total indirect manufacturing cost?  3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost?  b. What is the total nonmanufacturing cost?  c. What is the total conversion cost and prime cost?  4. With respect to cost classifications for predicting cost behavior: a. What is the total variable manufacturing cost?  b. What is the total fixed cost for the company as a whole?  c. What is the variable cost per unit produced and sold?  5. With respect to cost classifications for decision making: a. If Dozier had produced 1,001 units instead of 1,000 units, how much…

Required information [The following information applies to the questions displayed below] The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Raw materials purchases (all direct materials) Maintenance expense-Factory equipment Factory utilities Direct labor Indirect labor office salaries expense Rer expense-Office space Rent expense-Selling space Rent expense-Factory building Sales salaries expense $ 61,000 40,000 41,000 83,000 930,000 45,900 39,600 532,000 80,000 48,000 29,000 70,000 168,000 403,000

Required: For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product. Three sample answers are provided for illustration. Cost Item Example: Direct labor Example: Executive salaries Example: Factory rent 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons' commissions. 4. Supervisor's salary, factory. 5. Depreciation, executive autos. 6. Wages of workers assembling computers. 7. Insurance, finished goods warehouses. 8. Lubricants for production equipment. 9. Advertising costs. 10. Microchips used in producing calculators. 11. Shipping costs on merchandise sold. 12. Magazine subscriptions, factory lunchroom. 13. Thread in a garment factory. 14. Executive life…

d)  Determine the prime cost & conversion cost of the cases manufactured. e)  Prepare a schedule of cost of goods manufactured for the year ended December 31, 2020, clearly showing total manufacturing cost & total manufacturing costs to account for. f)  Prepare an income statement for Pro-Leather Company for the year ended December 31, 2020. List the non-manufacturing overheads in order of size starting with the largest. g)  What is the factory cost per case if Pro-Leather manufactured 19,200 cases for tablets for the year? h)  How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising entity?

[The following information applies to the questions displayed below.] The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Raw materials purchases (all direct materials) Maintenance expense-Factory equipment Factory utilities Direct labor Indirect labor Office salaries expense Rent expense-Office space Rent expense-Selling space Rent expense-Factory building Sales salaries expense $ 28,750 7,250 8,600 49,325 925,000 35,400 33,000 675,480 159,475 63,000 22,000 26,100 76,800 392,560

Required:Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. (Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or period cost.)   The options for the drop down in section 1 are: direct labor, direct materials, factory overhead, NA- not a product cost   the options for the drop down in section 2 are: general and administrative expenses, NA- not a period cost, selling expenses

Which of the following statements is true? a. Indirect materials and indirect labor are included in the manufacturing overhead. b. Examples of selling costs include sales commission, advertising, shipping, and the cost of operating finished goods warehouses, salaries of production supervisor. c. For financial accounting purposes, product costs include direct materials, direct labor, manufacturing overhead, and finance cost. d. For financial accounting purposes, period costs are also referred to as inventoriable costs.