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. 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. 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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Question

Can you help me solve this financial accounting problem using the correct accounting process?

Answer 1

Question

Chapter 15, Problem 15.2BE

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.

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.

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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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Answer 2

Question

Chapter 15, Problem 15.2BE

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.

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.

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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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Answer 3

Question

Chapter 15, Problem 15.2BE

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.

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.

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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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Answer 4

Question

Chapter 15, Problem 15.2BE

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.

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.

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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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Answer 5

Chapter 15, Problem 15.2BE

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.

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.

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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 6

Chapter 15, Problem 15.2BE

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.

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.

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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 7

Chapter 15, Problem 15.2BE

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.

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.

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 identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 8

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 9

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 10

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 11

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 12

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 13

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 14

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Answer 15

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Answer 25

Ch. 15 - What are the major differentes between managerial...Ch. 15 - A. Differentiate between a department with line...Ch. 15 - What manufacturing cost term is used to describe...Ch. 15 - Prob. 4DQ Ch. 15 - What is the difference between a product cost and...Ch. 15 - Name the three inventory accounts for a...Ch. 15 - In What order should the three inventories of a...Ch. 15 - Prob. 8DQ Ch. 15 - Prob. 9DQ Ch. 15 - How does the Cost of Goods Sold section of the...

Solution Summary: The author explains that the cost of the staples used to bind magazines is direct material (DM) or Factory overheads cost (FO).

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Chapter 15 Solutions