Question

blems - CH.15 - EX16-3, EX16-4, EX16-5, & EX16-7.pdf Problems - CH.15 - EX16-3, EX16-4, EX16-5, & EX16-7.pdf (665 KB) 1. Depreciation on the Auburn, Maine, manufacturing plant www OBJ. 2 EX 16-3 Classifying costs as factory overhead Which 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 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 c. Leather to be used on vehicles that have leather interiors Depreciation on mechanical robots used on the assembly line & Consultant fees for a study of production line efficiency h. Dealership sales incentives Vice president of human resources's salary 1 Property taxes on the Detriot, Michigan, headquarters building EX 16 4 Classifying costs as product or period costs OBJ. For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either product cost or a period cost a. Research and development costs h. Depreciation on sewing machines 0

Answer 1

EX-16-4
Item	Classification
a	Period Cost
b	Product Cost
c	Product Cost
d	Period Cost
e	Period Cost
f	Product Cost
g	Product Cost
h	Period Cost
i	Period Cost
j	Period Cost
k	Product Cost
l	Product Cost
m	Period Cost
n	Product Cost
o	Product Cost

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EX-16-5
a	Advertising cost are usually viewed as PERIOD cost
b	Feedback is often used to IMPROVE operations.
c	Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are COSTS.
d	A product, sales territory, department, or activity to which costs are traced is called a COST OBJECT.
e	The balance sheet of a manufacturer would include an account for Work in Process Inventory.
f	Factory overhead costs combined with direct labor costs are called Conversion Cost.
g	The implementation of automatic, robotic factory equipment normally DECREASE the direct labor component of product costs.

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Ex-16-7
Item	Classification
a	Direct Cost
b	Indirect Cost
c	Direct Cost
d	Direct Cost
e	Indirect Cost
f	Indirect Cost
g	Indirect Cost
h	Indirect Cost
i	Indirect Cost
j	Direct Cost
k	Indirect Cost
l	Indirect Cost