Question

Classifying Costs The following is a list of costs incurred by several business 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. Cost of fabric used by dothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used to store work in process and finished products d. Wages of production quality control personnel e. Oil lubricants for factory plant and equipment f. Depreciation of robot used to assemble a product 9. Travel costs of marketing executives to annual sales meeting h. Depreciation of copying machines used by the Marketing Department i. Fees charged by collection agency on past-due customer accounts j. Electricity used to operate factory machinery k. Maintenance costs for factory equipment 1. Pens, paper and other supplies used by the Accounting Department in preparing v m. Charitable contribution to United Fund n. Depreciation of microcomputers used in the factory to coordinate and monitor .. Fee paid to lawn service for office grounds upice p. Cost of sewing machine needles used by a shirt man G. Cost of plastic for a telephone being manufactured F. Telephone charges by president's office 5. Cost of 30-second television commercial t. Surgeon's fee for heart bypass surgery u. Depreciation of tools used in production Previous Next > |

Answer 1

a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment C. Rent for a warehouse used to store work in process and finished products d. Wages of production quality control personnel e. Joil lubricants for factory plant and equipment f. Depreciation of robot used to assemble a product g. Travel costs of marketing executives to annual sales meeting h. Depreciation of copying machines used by the Marketing Departments i. Fees charged by collection agency on past-due customer accounts j. Electricity used to operate factory machinery k. Maintenance costs for factory equipment 1. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reports m. Charitable contribution to United Fund n. Depreciation of micro computers used in the factory to coordinate and monitor the production schedules 0. Fees paid to lawn service for office grounds upkeep p. Cost of sewing machine needles used by a shirt manufacturer q. Cost of plastic for a telephone being manufactured r. Telephone charges by president's office s. Cost of 30-second television commercial t. Surgeon's fee for heart bypass surgery u. Depreciation of tools used in production v. Wages of a machine operator on the production line w. Salary of the vice president of manufacturing operations X. Factory janitorial supplies Direct materials cost Factory overhead cost Factory overhead cost Factory overhead cost Factory overhead cost Factory overhead cost Selling expense Selling expense Administrative expense Factory overhead cost Factory overhead cost Administrative expense Administrative expense Factory overhead cost Administrative expense Factory overhead cost Direct materials cost Administrative expense Selling expense Administrative expense Factory overhead cost Direct labor cost Administrative expense Factory overhead cost