**Cost Breakdown for Bicycle Manufacturing at Trak Corporation**Trak Corporation has reported the following expenses incurred during the manufacturing of its bicycles:- **Bicycle components:** $100,000- **Depreciation on plant:** $60,000- **Property taxes on store:** $7,500- **Labor costs of assembly-line workers:** $110,000- **Factory supplies used:** $13,000- **Advertising expense:** $45,000- **Property taxes on plant:** $14,000- **Delivery expense:** $21,000- **Sales commissions:** $35,000- **Salaries paid to sales clerks:** $50,000These figures represent the various costs associated with the production and sale of bicycles, encompassing both manufacturing and selling expenses. ### Cost Classification ExerciseIdentify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.1. **Bicycle components** - [Dropdown for selection]2. **Depreciation on plant** - [Dropdown for selection]3. **Property taxes on store** - [Dropdown for selection]4. **Labor costs of assembly-line workers** - [Dropdown for selection]5. **Factory supplies used** - [Dropdown for selection]6. **Advertising expense** - [Dropdown for selection]7. **Property taxes on plant** - [Dropdown for selection]8. **Delivery expense** - [Dropdown for selection]9. **Sales commissions** - [Dropdown for selection]10. **Salaries paid to sales clerks** - [Dropdown for selection]### Instructions:For each item listed, select the appropriate category from the dropdown menu. This exercise is designed to help you understand how different costs are categorized in a business setting.

The period costs are the costs that do not relate to the production. These costs generally include…

Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $100,000 60,000 7,500 110,000 13.000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,00 14.00 21,00 35,00 50,00

Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $100,000 60,000 7,500 110,000 13.000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,00 14.00 21,00 35,00 50,00

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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Otsego Industries manufactured 300,000 units of product last year and identified the following costs associated with the manufacturing activity: Variable costs: Direct materials used Direct labor Indirect materials and supplies Power to run plant equipment Fixed costs: Supervisory salaries Plant utilities (other than for plant equipment) Depreciation on plant and equipment Property taxes on building Answer is not complete. $ 10,965.00 $ 8,160.00 $ 19,125.00 ($000) $ 6,120.0 4,060.0 1,420.0 1,300.0 Required: Unit variable costs and total fixed costs are expected to remain unchanged in the following year. However, management expects a slowdown in sales, because of the economy in the following year. Calculate the unit cost and the total cost if 255,000 units are produced next year. Note: Enter your total cost answers in thousands. Round your answers to 2 decimal places. Total variable costs Total fixed costs Total costs Unit costs $ 2,460.0 1,896.7 2,285.0 1,518.3
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Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. 1. Plastic for casing-$20,000 2. Wages of assembly workers-$89,000 3. Property taxes on factory-$6,000 4. Office accounting salaries-$39,000 5. Drum stands-$35,000 6. Rent cost of office for accountants-$48,000 7. Office management salaries-$210,000 8. Annual fee for factory maintenance $16,000 9. Sales commissions-$21,000 10. Factory machinery depreciation, straight-line-$41,000 Costs Required: 1. Classify each cost and its amount as either product or period. The first cost is completed as an example. Costs 1. Plastic for casing 2. Wages of assembly workers 3. Property taxes on factory 4. Office accounting salaries 5. Drum stands 6. Rent cost of office for accountants 7. Office management salaries 8. Annual fee for factory maintenance 9 Sales commissions 10 Factory machinery depreciation, straight-line i $ Product 20,000 Period
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