Problem 1. Classify each of the (V) fixed costs (F); (b) as invent- Example: Direct labor 1. Salary of company con 2. Fire insurance on dire 3. Property taxes on finis held for sale 4. Direct materials used 5. Factory.renty ap 6. Sales Commissions 7. Overtime premium of r operators 8. Straight-line depreciati Factory equipmen 9. Straight-line depreciati trucks used for del of sales to custome 10. Salary of factory supe

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Instruction: Read each problem carefully ana proviue h n
Prob
Problem 1. Classify each of the following costs of Bug Company in two ways: (a) as variable
(V) fixed costs (F); (b) as inventoriable costs (I) or period costs (P):
Example: Direct labor
1. Salary of company
2. Fire insurance on direct materials
controller
3. Property taxes on finished goods
held for sale
4. Direct materials used tico of
5. Factory.renty p
6. Sales Commissions R
7. Overtime premium of machine
operators
8. Straight-line depreciation of
Factory equipment
9. Straight-line depreciation of
trucks used for delivery
R.
of sales to customers
10. Salary of factory supervisor
16
Transcribed Image Text:Instruction: Read each problem carefully ana proviue h n Prob Problem 1. Classify each of the following costs of Bug Company in two ways: (a) as variable (V) fixed costs (F); (b) as inventoriable costs (I) or period costs (P): Example: Direct labor 1. Salary of company 2. Fire insurance on direct materials controller 3. Property taxes on finished goods held for sale 4. Direct materials used tico of 5. Factory.renty p 6. Sales Commissions R 7. Overtime premium of machine operators 8. Straight-line depreciation of Factory equipment 9. Straight-line depreciation of trucks used for delivery R. of sales to customers 10. Salary of factory supervisor 16
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