Direct Material cost: Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle. To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead .

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Answer 1

Question

Chapter 1, Problem 1.4BE

(a)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead.

(b)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of an engine would be classified as direct materials, direct labor, or manufacturing overhead.

(c)

To determine

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

To indicate: Whether the cost of the wages of the assembly line worker would be classified as direct materials, direct labor, or manufacturing overhead.

(d)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the depreciation of factory machinery would be classified as direct materials, direct labor, or manufacturing overhead.

(e)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the factory machinery lubricants would be classified as direct materials, direct labor, or manufacturing overhead.

(f)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the tires would be classified as direct materials, direct labor, or manufacturing overhead.

(g)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the steering wheel would be classified as direct materials, direct labor, or manufacturing overhead.

(h)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the salary of the painting supervisor would be classified as direct materials, direct labor, or manufacturing overhead.

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Answer 2

Question

Chapter 1, Problem 1.4BE

(a)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead.

(b)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of an engine would be classified as direct materials, direct labor, or manufacturing overhead.

(c)

To determine

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

To indicate: Whether the cost of the wages of the assembly line worker would be classified as direct materials, direct labor, or manufacturing overhead.

(d)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the depreciation of factory machinery would be classified as direct materials, direct labor, or manufacturing overhead.

(e)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the factory machinery lubricants would be classified as direct materials, direct labor, or manufacturing overhead.

(f)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the tires would be classified as direct materials, direct labor, or manufacturing overhead.

(g)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the steering wheel would be classified as direct materials, direct labor, or manufacturing overhead.

(h)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the salary of the painting supervisor would be classified as direct materials, direct labor, or manufacturing overhead.

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Answer 3

Question

Chapter 1, Problem 1.4BE

(a)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead.

(b)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of an engine would be classified as direct materials, direct labor, or manufacturing overhead.

(c)

To determine

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

To indicate: Whether the cost of the wages of the assembly line worker would be classified as direct materials, direct labor, or manufacturing overhead.

(d)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the depreciation of factory machinery would be classified as direct materials, direct labor, or manufacturing overhead.

(e)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the factory machinery lubricants would be classified as direct materials, direct labor, or manufacturing overhead.

(f)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the tires would be classified as direct materials, direct labor, or manufacturing overhead.

(g)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the steering wheel would be classified as direct materials, direct labor, or manufacturing overhead.

(h)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the salary of the painting supervisor would be classified as direct materials, direct labor, or manufacturing overhead.

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Answer 4

Question

Chapter 1, Problem 1.4BE

(a)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead.

(b)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of an engine would be classified as direct materials, direct labor, or manufacturing overhead.

(c)

To determine

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

To indicate: Whether the cost of the wages of the assembly line worker would be classified as direct materials, direct labor, or manufacturing overhead.

(d)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the depreciation of factory machinery would be classified as direct materials, direct labor, or manufacturing overhead.

(e)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the factory machinery lubricants would be classified as direct materials, direct labor, or manufacturing overhead.

(f)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the tires would be classified as direct materials, direct labor, or manufacturing overhead.

(g)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the steering wheel would be classified as direct materials, direct labor, or manufacturing overhead.

(h)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the salary of the painting supervisor would be classified as direct materials, direct labor, or manufacturing overhead.

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Answer 5

Chapter 1, Problem 1.4BE

(a)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead.

(b)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of an engine would be classified as direct materials, direct labor, or manufacturing overhead.

(c)

To determine

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

To indicate: Whether the cost of the wages of the assembly line worker would be classified as direct materials, direct labor, or manufacturing overhead.

(d)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the depreciation of factory machinery would be classified as direct materials, direct labor, or manufacturing overhead.

(e)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the factory machinery lubricants would be classified as direct materials, direct labor, or manufacturing overhead.

(f)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the tires would be classified as direct materials, direct labor, or manufacturing overhead.

(g)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the steering wheel would be classified as direct materials, direct labor, or manufacturing overhead.

(h)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the salary of the painting supervisor would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 6

Chapter 1, Problem 1.4BE

(a)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 7

Chapter 1, Problem 1.4BE

(a)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of a windshield would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 8

(b)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of an engine would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 9

(b)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of an engine would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 10

(c)

To determine

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

To indicate: Whether the cost of the wages of the assembly line worker would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 11

(c)

To determine

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

To indicate: Whether the cost of the wages of the assembly line worker would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 12

(d)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the depreciation of factory machinery would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 13

(d)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the depreciation of factory machinery would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 14

(e)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the factory machinery lubricants would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 15

(e)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the cost of the factory machinery lubricants would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 16

(f)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the tires would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 17

(f)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the tires would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 18

(g)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the steering wheel would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 19

(g)

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

To indicate: Whether the cost of the steering wheel would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 20

(h)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the salary of the painting supervisor would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 21

(h)

To determine

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To indicate: Whether the salary of the painting supervisor would be classified as direct materials, direct labor, or manufacturing overhead.

Answer 22

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Answer 23

Expert Solution & Answer

Answer 24

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Answer 25

Ch. 1 - Prob. 1Q Ch. 1 - Distinguish between managerial and financial...Ch. 1 - How do the content of reports and the verification...Ch. 1 - Prob. 4Q Ch. 1 - Decision-making is managements most important...Ch. 1 - Explain the primary difference between line...Ch. 1 - Prob. 7Q Ch. 1 - Prob. 8Q Ch. 1 - How are manufacturing costs classified?Ch. 1 - Mel Finney claims that the distinction between...

Solution Summary: The author explains that direct material cost is the cost of the material which is directly involved in the production.

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