Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs. Bicycle components Depreciation on factory Property taxes on retail store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on factory Customer delivery expense Sales commissions Salaries paid to sales clerks
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- Which of the following is a prime cost? A. direct labor B. work in process inventory C. administrative labor D. factory maintenance expensesFor 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 officers 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 j. Repairs and maintenance costs for sewing machines k. Research and development costs l. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operatorsFreeman Furnishings has summarized its data as shown: Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours
- Statement of cost of goods manufactured and income statement for a manufacturing company The following information is available for Shanika Company for 20Y6: Instructions 1. Prepare the 20Y6 statement of cost of goods manufactured. 2. Prepare the 20Y6 income statement.Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $100,000 60,000 7,500 110,000 13,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 14,000 21,000 35,000 50,000Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. a. Wages of administrative staff b. Shipping costs on merchandise sold C. Wages of workers assembling computers d. Cost of lease on factory equipment e. Insurance on factory f. Direct materials used in production of lamps g. Supervisor salary, factory h. Advertising costs_ i. Property taxes, factory j. Health insurance cost for company executives k. Rent on factory
- Classify each of the following as a variable, fixed cost or mixed cost. a. Direct labour b. Depreciation of machinery c. Factory rental d. Factory managers salary e. Commissions paid to sales personnel f. Salaries of sales clerks g. Maintenance for production equipment based on production volume h. Telephone chargesDistinguish between manufacturing & non-manufacturing overhead (product versus period costs) 2) Classify costs as prime costs or conversion costs 3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for. 4) Prepare an income statement for a manufacturing entity, clearly showing Cost of Goods Sold. 5) Explain the difference between the income statements of a merchandiser & a manufacturer Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor 3,952,600 Indirect Factory Labor 1,232,250 Total Depreciation 1 400,000 Total Utilities 525,000 Distribution & Customer Service Costs 76,800 Insurance on Plant & Equipment 585,000 Property Taxes 90,000 Administrative wages & salaries 1076,000…Distinguish between manufacturing & non-manufacturing overhead (product versus period costs) 2) Classify costs as prime costs or conversion costs 3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for. 4) Prepare an income statement for a manufacturing entity, clearly showing Cost of Goods Sold. 5) Explain the difference between the income statements of a merchandiser & a manufacturer Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor 3,952,600 Indirect Factory Labor 1,232,250 Total Depreciation 1 400,000 Total Utilities 525,000 Distribution & Customer Service Costs 76,800 Insurance on Plant & Equipment 585,000 Property Taxes 90,000 Administrative wages & salaries 1076,000…
- Identify whether the following items should be included in Direct Materials (DM), Direct Labor (DL), Manufacturing Overhead (MO) or Period Costs (PC) (a) Assembly line wages (b) Raw materials used directly in product (c) Depreciation on office equipment (d) Property taxes on factory building (e) Rent on factory building (f) Sales commissions (g) Depreciation on factory equipment (h) Factory utilities (i) Wages for factory maintenance workers 0) Advertising (k) Indirect materials used in production (1) Factory manager's salaryDistinguish between manufacturing & non-manufacturing overhead (product versus period costs) 2) Classify costs as prime costs or conversion costs 3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for. 4) Prepare an income statement for a manufacturing entity, clearly showing Cost of Goods Sold. 5) Explain the difference between the income statements of a merchandiser & a manufacturer Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor 3,952,600 Indirect Factory Labor 1,232,250 Total Depreciation 1 400,000 Total Utilities 2 525,000 Distribution & Customer Service Costs 76,800 Insurance on Plant & Equipment 585,000 Property Taxes 3 90,000 Administrative Wages & Salaries 1,076,000 Advertising Expenses 57,700 Sales Commission 6% of…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 1. Property taxes, factory 2 Boxes used for packaging detergent produced by the company. 3. Salespersons commissions 4. Supervisor's salary factory 5. Depreciation, encive autos 6. Wages of workers assembling computers 7. Insurance, finished goods warehouses Lubricants for production equipment 9. Advertising costs 10. Microchips used in producing calculators 11. Shipping costs on merchandise sold