Which of the following is an example of a period cost in a company thatmakes clothing?a. Fabric used to produce men's pants.b. Advertising cost for a new line of clothing.c. Factory supervisor's salary.d. Monthly depreciation on production equipment.

Step 1: Understand the Difference Between Period Costs and Product CostsPeriod Costs:These are…

Answered: Which of the following is an example of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4E: For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as...

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Which of the following would most likely be a period cost? Depreciation on factory lunchroom furniture. Salary of telephone receptionist in the sales office. Salary of a security guard for the factory parking lot. Computer chips used by a computer manufacturer.
Indicate whether each cost is: A. Fixed or Variable b. Selling, General/Administrative, or Manufacturing
Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. a. Wages of administrative staff b. Shipping costs on merchandise sold C. Wages of workers assembling computers d. Cost of lease on factory equipment e. Insurance on factory f. Direct materials used in production of lamps g. Supervisor salary, factory h. Advertising costs_ i. Property taxes, factory j. Health insurance cost for company executives k. Rent on factory
Required: Classify the following costs as period or traceable costs. Depreciation on office building Insurance expense for factory building Product liability insurance premium Transportation charges for raw materials Factory repairs and maintenance Rent for inventory warehouse Cost of raw materials Factory wages Salary to chief executive officer Depreciation on factory Bonus to factory workers Salary to marketing staff Administrative expenses Bad debt expense Advertising expense Research and development Warranty expense Electricity for plant
Identify the following costs as a product cost or a period cost for an automobile manufacturer:a. Steelb. Wages of employees that operate painting equipmentc. Rent on office buildingd. Sales staff salaries
For a manufacturing company, which of the following is an example of a period cost rather than a product cost? a. Depreciation on factory equipment b. Advertising expense c. Wages of machine operators d. Insurance on factory equipment
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 $45,000 14,000 21,000 35,000 50,000
Which of the following manufacturing costs is an indirect cost of producing a product? a.commissions for sales personnel b.memory chips for a microcomputer manufacturer c.oil lubricants used for factory machinery d.hourly wages of an assembly worker
An example of a period cost isa. the salary of a production supervisor.b. the raw materials used in production.c. the property taxes on a factory building.d. advertising and promotion expenditures.e. none of the above.
Hankook Company employ new employee and are assigned to make Statement of Cost of Manufactured, Statement of Cost of Goods Sold, and Income Statement. The results attached on picture below Questions : a. Identify the period cost and the total in USD b. If there is something wrong with the income statement above, correct the income statement above so all the item cost is where it should be. c. Calculate the prime costs, conversion costs, manufacturing cost, and the period cost
Hankook Company employ new employee and are assigned to make Statement of Cost of Manufactured, Statement of Cost of Goods Sold, and Income Statement. The results attached on picture below Questions : a. Identify the factory overhead item and the total in USD b. Identify the period cost and the total in USD c. If there is something wrong with the income statement above, correct the income statement above so all the item cost is where it should be.
Which of the following is a period cost? a. Property taxes on the production facilities. b. The production supervisor's salary. c. Costs to ship the product to the customer. d. Depreciation of the factory equipment.

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Which of the following is an example of a period cost in a company that makes clothing? a. Fabric used to produce men's pants. b. Advertising cost for a new line of clothing. c. Factory supervisor's salary. d. Monthly depreciation on production equipment.