Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 15, Problem 1PA
The following is a list of costs that were incurred in the production and sale of large commercial airplanes:
- a. Annual bonus paid to the chief operating officer of the company
- b. Annual fee to a celebrity to promote the aircraft
- c. Cost of electronic guidance system installed in the airplane cockpit
- d. Cost of electrical wiring throughout the airplane
- e. Cost of miniature replicas of the airplane used to promote and market the airplane
- f. Cost of normal scrap from production of airplane body
- g. Cost of paving the headquarters employee parking lot
- h. Decals for cockpit door, the cost of which is immaterial to the cost of the final product
- i.
Depreciation on factory equipment - j. Hourly wages of employees that assemble the airplane
- k. Hydraulic pumps used in the airplane’s flight
control system - l. Instrument panel installed in the airplane cockpit
- m. Interior trim material used throughout the airplane cabin
- n. Masks for use by painters in painting the airplane body
- o. Metal used for producing the airplane body
- p. Oil to lubricate factory equipment
- q. Power used by painting equipment
- r. Prebuilt leather seats installed in the first-class cabin
- s. Production Quality Control Department costs for the year
- t. Salaries of Marketing Department personnel
- u. Salaries of test pilots
- v. Salary of chief financial officer
- w. Salary of plant manager
- x. Special advertising campaign in Aviation World magazine
- y. Turbo-charged airplane engine
- z. Yearly cost of the maintenance contract for robotic equipment
Instructions
Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a
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The following is a list of costs that were incurred in the production and sale of large commercial airplanes:a. Annual bonus paid to the chief operating officer of the companyb. Annual fee to a celebrity to promote the aircraftc. Cost of electronic guidance system installed in the airplane cockpitd. Cost of electrical wiring throughout the airplanee. Cost of miniature replicas of the airplane used to promote and market the airplanef. Cost of normal scrap from production of airplane bodyg. Cost of paving the headquarters employee parking loth. Decals for cockpit door, the cost of which is immaterial to the cost of the final producti. Depreciation on factory equipmentj. Hourly wages of employees that assemble the airplanek. Hydraulic pumps used in the airplane’s flight control systeml. Instrument panel installed in the airplane cockpitm. Interior trim material used throughout the airplane cabinn. Masks for use by painters in painting the airplane bodyo. Metal used for producing the…
Which of the following is a capital expenditure?
Select one:
a. Cost to add air conditioning to a company car
b. Cost to purchase three ashtrays for the company conference room
c. Cost to replace spark plug on company lawnmower
d. Cost to have store windows washed
e. None of the above
For the business of J. James, Wholesale Chemist, classify the following between capital and revenue expenditure:
Purchase of an extra motor van
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Building extension to the warehouse
Painting extension to warehouse when it is first build
Repainting extension to warehouse three years after (d)
Carriage costs on material for new warehouse extension
Carriage costs on purchases
Carriage cost of sales
Legal costs of collecting debts
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Fire insurance premium
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Chapter 15 Solutions
Financial And Managerial Accounting
Ch. 15 - What are the major differences between managerial...Ch. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Distinguish between prime costs and conversion...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 - What are the three categories of manufacturing...Ch. 15 - How do the manufacturing costs incurred during a...Ch. 15 - How does the Cost of goods sold section of the...
Ch. 15 - Management process Three phases of the management...Ch. 15 - Direct materials, direct labor, and factory...Ch. 15 - Prob. 3BECh. 15 - Product and period costs Identify the following...Ch. 15 - Cost of goods sold, cost of goods manufactured...Ch. 15 - Prob. 6BECh. 15 - Prob. 1ECh. 15 - Indicate whether the following costs of Procter ...Ch. 15 - Prob. 3ECh. 15 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 15 - From the choices presented in parentheses, choose...Ch. 15 - From the choices presented in parentheses, choose...Ch. 15 - Classifying costs In a service company A partial...Ch. 15 - Classifying costs The following is a manufacturing...Ch. 15 - Financial statements of a manufacturing firm The...Ch. 15 - Manufacturing company balance sheet Partial...Ch. 15 - Cost of direct materials used in production for a...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Income statement for a manufacturing company Two...Ch. 15 - Statement of cost of goods manufactured for a...Ch. 15 - Cost of goods sold, profit margin, and net income...Ch. 15 - Cost flow relationships The following information...Ch. 15 - The following is a list of costs that were...Ch. 15 - The following is a list of costs incurred by...Ch. 15 - A partial list of Foothills Medical Centers costs...Ch. 15 - Manufacturing income statement, statement of cost...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - The following is a list of costs that were...Ch. 15 - Prob. 2PBCh. 15 - A partial list of The Grand Hotels costs follows:...Ch. 15 - Several items are omitted from the income...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 15 - Hilton Hotels and Marriott International:...Ch. 15 - Comparing occupancy for two hotels Sunrise Suites...Ch. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Communication Todd Johnson is the Vice President...Ch. 15 - For each of the following managers, describe how...Ch. 15 - The following situations describe scenarios that...Ch. 15 - Geek Chic Company provides computer repair...Ch. 15 - Which of the following items would not be...Ch. 15 - Prob. 2CMACh. 15 - A firm has 100,000 in direct materials costs,...Ch. 15 - In practice, items such as wood screws and glue...
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