Question

Managerial Accounting Concepts and Principles )Classifying costs as materials, labor, or factory overhead EX 1-2 Tedicate whether the following costs of Procter & Gamble, a maker of consumer products, weuld be classified as direct materials cost, direct labor cost, or factory overhead cost. 08,2 a. Plant manager salary for the lowa City, lowa, plant b. Maintenance supplies c. Salary of process engineers d. Wages paid to Packaging Department employees in the Bear River City, Utah, paper products plant e. Scents and fragrances used in making soaps and detergents f. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant . Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plant h. Packaging materials Resins for body wash products i. Depreciation on the Auburn, Maine, manufacturing plant Classifying costs as factory overhead EX 1-3 Whieh of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks? a. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies 08),2 b. Depreciation on Flat Rock, Michigan, assembly plant c. Dividends paid to shareholders d. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant e. Leather to be used on vehicles that have leather interiors f. Depreciation on mechanical robots used on the assembly line g. Consultant fees for a study of production line efficiency h. Dealership sales incentives i. Vice president of human resources's salary j Property taxes on the Detriot, Michigan, headquarters building EX 1-4 For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: a. Research and development costs Depreciation on sewing machines ost c. Fabrie- used during production Penod cost Depreciation on office equipment Pend ost fAdvertising expenses renvd (DS Repairs and maintenance costs for sewing machines odwa g. Salary of production quality control supervisor h Utility costs for office building ew i sales commissions eno ct Classifying costs as product or period costs OBJ.2 od procwer st Paw ust n i Salaries of distribution center personnel fno cas+ tk wages of sewing machine operators t CUR d Factory janitorial supplies Peed Los . Chief financial officer's salary Prlura s Travel eosts of media relations employees aterd S Factory supérvisors' salaries Ppewot as pOil used to lubricate sewing machines frawcAc ct 9 Property taxes on factory building and equipmente os

Answer 1

Answer to Question EX 1-2:

Plant manager salary for the Iowa city, Iowa, plant: Factory overhead cost
Maintenance supplies: Factory overhead cost
Salary of process engineers: Factory overhead cost
Wages paid to Packaging department employees in the Bear River City, Utah, paper products plant: Direct labor cost
Scents and fragrances used in making soaps and detergents: Direct materials cost
Wages of production line employees at the Pineville, Louisiana, soap and detergent plant: Direct labor cost
Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plant: Factory overhead cost
Packaging materials: Direct materials cost
Resins for body wash products: Direct materials cost
Depreciation on the Auburn, Maine, manufacturing plant: Factory overhead cost