Question

Classify the following costs of a book publisher as product or period. Product costs should be further classified as prime or conversion.

Product or period Prime or conversion

a. Costs of rolls of blank paper

b. Cost of cardboard displays for bookstores

c. wages of accounting clerks that process production payroll

d. utility costs at the printing facility.

e. salary or pressroom supervisor.

f. shipping charges for carbon black inks to be used.

g. cost of temporary workers hired for production work to get highly anticipated best seller printed on time.

h. cost to ship books to barnes $ Noble.

i. salary of editor-in-chief of publishing company.

j. costs of quality testing during printing process.

Classify the following costs as fixed or variable

fixed or variable

a. costs of rolls of blank papers.

b. wages of accounting clerks that process production payroll

c. salary of pressroom supervisor.

d. shipping charges for carbon black inks to be used.

e. cost of temporary hourly workers hired for production work to get highly anticipated best seller printed on time.

f. cost to ship books to barneds $ noble.

g. salary of editor-in-chief of publishing company.

h. costs of quality testing during printing process.

i. annual rent on printing facility.

classify the following items as being either product costs or period costs. if a product cost is identified, indicate if the cost is prime or conversion.

Product or period prime, conversion or N/A

a. cost of machinery repairs.

b. cost of fabric for a clothing manufacturer.

c. factory insurance cost.

d. rent on factory building.

e. cost of advertising the product.

f. cost of lubricating oils for equipment.

g. wages paid to a machine operator.

h. cost of utilities in the factory building.

i. wages paid to factory foreman.

j. wages paid to the president's secretary.

Answer 1

Classify the following costs of a book publisher as product or period. Product costs should be further classified as prime or conversion:	Remarks
a. Costs of rolls of blank paper	Product Prime Cost
b. Cost of cardboard displays for bookstores	Period Cost
c. wages of accounting clerks that process production payroll	Period Cost
d. utility costs at the printing facility.	Product Conversion Cost
e. salary or pressroom supervisor.	Product Conversion Cost
f. shipping charges for carbon black inks to be used.	Product Prime Cost
g. cost of temporary workers hired for production work to get highly anticipated best seller printed on time.	Product Prime Cost
h. cost to ship books to barnes $ Noble.	Period Cost
i. salary of editor-in-chief of publishing company.	Product Conversion Cost
j. costs of quality testing during printing process.	Product Conversion Cost
Classify the following costs as fixed or variable:
a. costs of rolls of blank papers.	Variable
b. wages of accounting clerks that process production payroll	Fixed
c. salary of pressroom supervisor.	Fixed
d. shipping charges for carbon black inks to be used.	Variable
e. cost of temporary hourly workers hired for production work to get highly anticipated best seller printed on time.	Variable
f. cost to ship books to barneds $ noble.	Variable
g. salary of editor-in-chief of publishing company.	Fixed
h. costs of quality testing during printing process.	Variable
i. annual rent on printing facility.	Fixed
classify the following items as being either product costs or period costs. if a product cost is identified, indicate if the cost is prime or conversion:
a. cost of machinery repairs.	Period Cost
b. cost of fabric for a clothing manufacturer.	Product Prime Cost
c. factory insurance cost.	Product Conversion Cost
d. rent on factory building.	Product Conversion Cost
e. cost of advertising the product.	Period Cost
f. cost of lubricating oils for equipment.	Product Conversion Cost
g. wages paid to a machine operator.	Product Prime Cost
h. cost of utilities in the factory building.	Product Conversion Cost
i. wages paid to factory foreman.	Product Conversion Cost
j. wages paid to the president's secretary.	Period Cost