Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 2PB
The following is a list of costs incurred by several manufacturing companies:
a. Bonus for vice president of marketing
b. Costs of operating a research laboratory
c. Cost of unprocessed milk for a dairy
d.
e. Entertainment expenses for sales representatives
f. Factory supplies
g. First-aid nurse for factory workersh. Health insurance premiums paid for factory workers
i. Hourly wages of warehouse laborers
j. Lumber used by furniture manufacturer
k. Maintenance
l. Microprocessors for a microcomputer manufacturer
m. Packing supplies for products sold, which are insignificant to the total cost of the product
n. Paper used by commercial printer
o. Paper used in processing various managerial reports
p. Protective glasses for factory machine operators
q. Salaries of quality control personnel
r. Sales commissions
s. Seed for grain farmer
t. Television advertisement
u. Prebuilt transmissions for an automobile manufacturer
v. Wages of a machine operator on the production line
w. Wages of secretary of company controller
x. Wages of telephone operators for a toll-free, customer hotline
Instructions
Classify each of the preceding costs as a product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory
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The following is a list of costs incurred by several manufacturing companies:
a. Bonus for vice president of marketing
b. Costs of operating a research laboratory
c. Cost of unprocessed milk for a dairy
d. Depreciation of factory equipment
e. Entertainment expenses for sale representatives
f. Factory supplies
g. First-aid nurse for factory workersh. Health insurance premiums paid for factory workers
i. Hourly wages of warehouse laboresrs
j. Lumber used by furniture manufacturer
k. Maintenance costs for factory equipment
l. Microprocessors for a microcomputer manufacturer
m. Packing supplies for products sold, which are insignificant to the total cost of the product
n. Paper used by commercial printer
o. Paper used in processing various managerial reports
p. Protective glasses for factory machine operators
q. Salaries of quality control personnel
r. Sales commissions
s. Seed for gain farmer
t. Television advertisment
u. Prebuilt transmissions for an automobile manufacturer
v. Wages of a…
Classify each of the following costs as manufacturing or non manufacturing:
1. Factory rental
2. Interest on bank overdraft
3. Depreciation on warehouse equipment
4. Salary and bonus for the chief accountant
5. Wages of security guards in factory
6. Advertising
7. Property taxes on corporate headquarters building
8. Gas and electricity for the factory
9. Carriage on purchase of raw materials
10. Operators of product help lines for customers
The following is a list of costs incurred by several businesses:a. Cost of fabric used by clothing manufacturerb. Maintenance and repair costs for factory equipmentc. Rent for a warehouse used to store raw materials and work in processd. Wages of production quality control personnele. Oil lubricants for factory plant and equipmentf. Depreciation of robot used to assemble a productg. Travel costs of marketing executives to annual sales meetingh. Depreciation of copying machines used by the Marketing Departmenti. Fees charged by collection agency on past-due customer accountsj. Electricity used to operate factory machineryk. Maintenance costs for factory equipmentl. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reportsm. Charitable contribution to United Fundn. Depreciation of microcomputers used in the factory to coordinate and monitor the production scheduleso. Fees paid to lawn service for office grounds upkeepp. Cost of sewing…
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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