For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officer's salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors' salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines for cowing machines

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Only EX 15-4
C.
Dealership sales incentives
d. Depreciation on headquarters building in Dearborn, Michigan
e. Depreciation on mechanical robots used on the assembly line
Leather to be used on vehicles that have leather interiors
f.
g. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant
h. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subesseinblies
i. Property taxes on the Dearborn, Michigan, headquarters building
Vice president of human resource's salary
j.
EX 15-4 Classifying costs as product or period costs
Obj. 2
For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify eacih of the following
costs as either a product cost or a period cost:
REAL WORLD
a. Advertising expenses
b. Chief financial officer's salary
c. Depreciation on office equipment
d. Depreciation on sewing machines
e. Fabric used during production
f. Factory janitorial supplies
g. Factory supervisors' salaries
h. Property taxes on factory building and equipment
i.
Oil used to lubricate sewing machines
j. Repairs and maintenance costs for sewing machines
k. Research and development costs
1.
Sales commissions
m. Salaries of distribution center personnel
n. Salaries of production quality control supervisors
o. Travel costs of media relations employees
p. Utility costs for office building
q. Wages of sewing machine operators
EX 15-5 Concepts and terminology
Obj. 1, 2
Transcribed Image Text:C. Dealership sales incentives d. Depreciation on headquarters building in Dearborn, Michigan e. Depreciation on mechanical robots used on the assembly line Leather to be used on vehicles that have leather interiors f. g. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant h. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subesseinblies i. Property taxes on the Dearborn, Michigan, headquarters building Vice president of human resource's salary j. EX 15-4 Classifying costs as product or period costs Obj. 2 For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify eacih of the following costs as either a product cost or a period cost: REAL WORLD a. Advertising expenses b. Chief financial officer's salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors' salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines j. Repairs and maintenance costs for sewing machines k. Research and development costs 1. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operators EX 15-5 Concepts and terminology Obj. 1, 2
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