Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 1, Problem 1.5E
Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents’ salaries.
3. Memory boards and chips used in assembling computers.
4.
5. Salaries for assembly-line quality control inspectors.
6. Sales commissions paid to sell laptop computers.
7. Electrical components used in assembling computers.
8. Wages of workers assembling laptop computers.
9. Soldering materials used on factory assembly lines.
10. Salaries for the night security guards for the factory building.
The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing
Instructions
List the items (1) through (10). For each item, indicate the cost category to which it belongs.
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Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
The company intends to classify these costs and expenses into the following categories: direct materials, direct labor, manufacturing
overhead, and period costs.
For each item, indicate the cost category to which it belongs.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Property taxes on the factory building.
Production superintendents' salaries.
Memory boards and chips used in assembling computers.
Depreciation on the factory equipment.
Salaries for quality control inspectors.
Sales commissions paid to sell laptop computers.
Electrical components used in assembling computers.
Wages of workers assembling laptop computers.
Soldering materials used on factory assembly lines.
Salaries for the night security guards for the factory building.
Category
Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.For each item, indicate the cost category to which it belongs. (A,B,C, or D)
Item
Category
1.
Property taxes on the factory building.
select the cost category
2.
Production superintendents’ salaries.
select the cost category
3.
Memory boards and chips used in assembling computers.
select the cost category
4.
Depreciation on the factory equipment.
select the cost category
5.
Salaries for assembly-line quality control inspectors.
select the cost category
6.
Sales commissions paid to sell laptop computers.
select the cost category
7.
Electrical components used in assembling computers.
select the…
ABD Corporation operates sales, administrative, and printing activities from a facility in
the South. It prints and sells a variety of products. The following selected costs relate
to the firm's acivities and particularly to the factory's Printing Department.
1 Production paper used in Printing Department
2 Hourly wages of production personnel in Printing Department
3 Factory property taxes and insurance
4 Supplies used which changes with printing volume in Printing Department
5 Contract signed by Printing Department manager for an annual maintenance fee on
special machinery
6 Equipment depreciation in Printing Department
7 Building depreciation
8 Sales commissions
9 Advertising contract costs for a special program
10 Annual computer staff; uses the same staff level all year - half for factory operations,
including the Printing Department, and half for administrative work
Required:
Based on reasonable assumptions about ABD Corporation, classifiy each cost as:
а.
variable or fixed cost…
Chapter 1 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 1 - Prob. 1QCh. 1 - Distinguish between managerial and financial...Ch. 1 - How do the content of reports and the verification...Ch. 1 - Prob. 4QCh. 1 - Decision-making is managements most important...Ch. 1 - Explain the primary difference between line...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - How are manufacturing costs classified?Ch. 1 - Mel Finney claims that the distinction between...
Ch. 1 - Tina Burke is confused about the differences...Ch. 1 - Identify the differences in the cost of goods sold...Ch. 1 - The determination of the cost of goods...Ch. 1 - Sealy Company has beginning raw materials...Ch. 1 - Tate Inc. has beginning work in process 26,000,...Ch. 1 - Using the data in Question 15, what are (a) the...Ch. 1 - In what order should manufacturing inventories be...Ch. 1 - How does the output of manufacturing operations...Ch. 1 - Discuss whether the product costing techniques...Ch. 1 - What is the value chain? Describe, in sequence,...Ch. 1 - What is an enterprise resource planning (HRP)...Ch. 1 - Why is product quality important for companies...Ch. 1 - Explain what is meant by balanced in the balanced...Ch. 1 - In what ways can the budgeting process create...Ch. 1 - What new rules were enacted under the...Ch. 1 - What is activity-based costing, and what are its...Ch. 1 - Distinguish between managerial and financial...Ch. 1 - Prob. 1.2BECh. 1 - Determine whether each of the following costs...Ch. 1 - Prob. 1.4BECh. 1 - Identify whether each of the following costs...Ch. 1 - Presented below are Rook Companys monthly...Ch. 1 - Francum Company has the following data: direct...Ch. 1 - In alphabetical order below are current asset...Ch. 1 - Presented below are incomplete manufacturing cost...Ch. 1 - Use the same data from BE1-9 above and the data...Ch. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DICh. 1 - Identify managerial cost classifications. (LO 2),...Ch. 1 - The following information is available for Tomlin...Ch. 1 - Match the descriptions that follow with the...Ch. 1 - Justin Bleeber has prepared the following list of...Ch. 1 - Presented below is a list of costs and expenses...Ch. 1 - Trak Corporation incurred the following costs...Ch. 1 - Determine the total amount of various types of...Ch. 1 - Gala Company is a manufacturer of laptop...Ch. 1 - Prob. 1.6ECh. 1 - National Express reports the following costs and...Ch. 1 - Lopez Corporation incurred the following costs...Ch. 1 - An incomplete cost of goods manufactured schedule...Ch. 1 - Manufacturing cost data for Copa Company are...Ch. 1 - Incomplete manufacturing cost data for Horizon...Ch. 1 - Cepeda Corporation has the following cost records...Ch. 1 - Keisha Tombert, the bookkeeper for Washington...Ch. 1 - The following information is available for Aikman...Ch. 1 - University Company produces collegiate apparel....Ch. 1 - An analysis of the accounts of Roberts Company...Ch. 1 - McQueen Motor Company manufactures automobiles....Ch. 1 - The following is a list of terms related to...Ch. 1 - Prob. 1.1APCh. 1 - Bell Company, a manufacturer of audio systems,...Ch. 1 - Incomplete manufacturing costs, expenses, and...Ch. 1 - Prepare a cost of goods manufactured schedule, a...Ch. 1 - Empire Company is a manufacturer of smart phones....Ch. 1 - Prob. 1.1WPCh. 1 - Prob. 1.1BYPCh. 1 - Tenrack is a fairly large manufacturing company...Ch. 1 - Prob. 1.4BYPCh. 1 - The primary purpose of managerial accounting is to...Ch. 1 - As noted in this chapter, because of global...
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