Question 2.1 Disco Dance Electronics Corporation manufactures a portable music player designed for middle age customers. The following list represents some of the different types of costs incurred in the manufacture of these music players: 1) The plant manager's salary.2) The cost of heating the plant.3) The cost of heating executive offices.4) The cost of printed circuit boards used in the music plyers.5) Depreciation on office equipment used in the executive offices.6) Depreciation on production equipment used in the plant.7) Wages of janitorial personnel who clean the plant.8) The cost of insurance on the plant building.9) The cost of electricity to light the plant.10) The cost of electricity to power plant equipment. Required: Classify each of the items above as product (inventoriable) cost or period (noninventoriable) costs for the purpose of preparing external financial statements.
Question 2.1 Disco Dance Electronics Corporation manufactures a portable music player designed for middle age customers. The following list represents some of the different types of costs incurred in the manufacture of these music players: 1) The plant manager's salary.2) The cost of heating the plant.3) The cost of heating executive offices.4) The cost of printed circuit boards used in the music plyers.5) Depreciation on office equipment used in the executive offices.6) Depreciation on production equipment used in the plant.7) Wages of janitorial personnel who clean the plant.8) The cost of insurance on the plant building.9) The cost of electricity to light the plant.10) The cost of electricity to power plant equipment. Required: Classify each of the items above as product (inventoriable) cost or period (noninventoriable) costs for the purpose of preparing external financial statements.
Question 2.1 Disco Dance Electronics Corporation manufactures a portable music player designed for middle age customers. The following list represents some of the different types of costs incurred in the manufacture of these music players: 1) The plant manager's salary.2) The cost of heating the plant.3) The cost of heating executive offices.4) The cost of printed circuit boards used in the music plyers.5) Depreciation on office equipment used in the executive offices.6) Depreciation on production equipment used in the plant.7) Wages of janitorial personnel who clean the plant.8) The cost of insurance on the plant building.9) The cost of electricity to light the plant.10) The cost of electricity to power plant equipment. Required: Classify each of the items above as product (inventoriable) cost or period (noninventoriable) costs for the purpose of preparing external financial statements.
Disco Dance Electronics Corporation manufactures a portable music player designed for middle age customers. The following list represents some of the different types of costs incurred in the manufacture of these music players:
1) The plant manager's salary. 2) The cost of heating the plant. 3) The cost of heating executive offices. 4) The cost of printed circuit boards used in the music plyers. 5) Depreciation on office equipment used in the executive offices. 6) Depreciation on production equipment used in the plant. 7) Wages of janitorial personnel who clean the plant. 8) The cost of insurance on the plant building. 9) The cost of electricity to light the plant. 10) The cost of electricity to power plant equipment.
Required:
Classify each of the items above as product (inventoriable) cost or period (noninventoriable) costs for the purpose of preparing external financial statements.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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