a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product. c. Factory operating supplies
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The following is a list of costs incurred by several businesses:
Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a
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- The following is a list of costs incurred by several businesses:a. Salary of quality control supervisorb. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.c. Factory operating suppliesd. Depreciation of factory equipmente. Hourly wages of warehouse laborersf. Wages of company controller’s secretaryg. Maintenance and repair costs for factory equipmenth. Paper used by commercial printeri. Entertainment expenses for sales representativesj. Protective glasses for factory machine operatorsk. Sales commissionsl. Cost of hogs for meat processorm. Cost of telephone operators for a toll-free hotline to help customers operate productsn. Hard drives for a microcomputer manufacturero. Lumber used by furniture manufacturerp. Wages of a machine operator on the production lineq. First-aid supplies for factory workersr. Tires for an automobile manufacturers. Paper used by Computer Department in processing various managerial reportst. Seed for…Classifying costsThe following is a list of costs incurred by several businesses:a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a verysmall portion of the total cost of the product.c. Factory operating suppliesd. Depreciation of factory equipmente. Hourly wages of warehouse laborers f. Wages of company controller's secretaryg. Maintenance and repair costs for factory equipmenth. Paper used by commercial printeri. Entertainment expenses for sales representativesj. Protective glasses for factory machine operators k. Sales commissionsl. Cost of hogs for meat processorm. Cost of telephone operators for a toll-free hotline to helpcustomers operate productsn. Hard drives for a microcomputer manufacturer o. Lumber used by furniture manufacturerp. Wages of a machine operator on the production lineq. First-aid supplies for factory workersr. Tires for an automobile manufacturers. Paper used by Computer Department in processing variousmanagerial…Classifying Costs The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. 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. Costs Classification a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product. c. Factory operating supplies d. Depreciation of factory equipment e. Hourly wages of warehouse laborers f. Wages of company controller’s secretary g. Maintenance and repair costs for factory equipment h. Paper used by commercial printer i. Entertainment expenses for sales representatives j. Protective glasses for factory machine operators k. Sales commissions l. Cost of hogs for meat processor m. Cost of…
- A. Which of the following costs is not a product cost? Depreciation on the plant installed in the factory The electricity cost of the office of factory foreman The cost of shipping finished products to customers The cost of fuel used in the factory B. Which of the following costs is not a period cost? Advertising cost Sales commission Interest Direct labor C. Which of the following would not be classed as a service department? The maintenance department The canteen The finance department The assembly department D. Job costing is the most suitable method for? Oil processing units Transport Companies Sugar Industry Repair shops E. Paper mills are must adopt? Unit costing Process costing Job costing Contract costingT F 1. Cost accounting systems measure, record, and report product costs. T F 2. A job order cost system tracks costs from materials inventory to work in process inventory to finished goods inventory to cost of goods sold. T F 3. A job order cost system provides product costs for each manufacturing department or process. T F 4. A receiving report indicates the quantity of materials received and the condition of th- materials received. T F 5. The predetermined factory overhead rates equals estimated total factory overhead costs divided by the minimum activity base. T F 6. Over-applied factory overhead occurs when less than the total factory overhead is applied. T F 7. Work in Process includes direct materials cost, direct labor cost, and applied factory overhead costs. T F 8. Period costs are added to the finished goods account. T F 8. A job order cost system can be used by managers for cost evaluation and control. T F 10. A materials ledger is a separate ledger for each type of work in…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 charges
- 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 soldWhich one of the following represents a period cost? 1) The VP of Sales' salary and benefits 2) Overhead allocated to the manufacturing operations A3) Labor costs associated with quality control 4) Fringe benefits associated with factory workersWhich one of the following represents a period cost? a. Fringe benefits associated with factory workers. b. The VP of Sales' salary and benefits. C. Overhead allocated to the manufacturing operations. d. Labor costs associated with quality control.
- 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 employeeClassify 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 customersFactory overhead costs do not include which of the following: a. insurance b. heating c. taxes d, hourly wages 2. The most common method used when assuming how inventory flows through the manufacturing process is: a. LIFO b. FIFO c. LILO d. FILO 3. Activity-based activities include all of the following, except: a. direct material b. fabrication c. assembly d. selling and administration 4. Wages of a company’s janitors or cleaning crew would be considered: a. direct labor b. direct input c. factory overhead d. offset expenses 5. Cost of production reports can be used to compare materials output quantity to materials input quantity is known as ____________ of a process. a. equivalency b. yield c. subtotal units d. indirect material 6. Businesses like attorneys, accountants, and hospitals use _________ systems. a. process cost b. period costs c. department allocation d. job order costs 7. ________ costs include direct labor and factory overhead. a. prime b. product c.…