Classifying Costs The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product. c. Factory operating supplies d. Depreciation of factory equipment e. Hourly wages of warehouse laborers f. Wages of company controller’s secretary g. Maintenance and repair costs for factory equipment h. Paper used by commercial printer i. Entertainment expenses for sales representatives j. Protective glasses for factory machine operators k. Sales commissions l. Cost of hogs for meat processor m. Cost of telephone operators for a toll-free hotline to help customers operate products n. Hard drives for a microcomputer manufacturer o. Lumber used by furniture manufacturer p. Wages of a machine operator on the production line q. First-aid supplies for factory workers r. Tires for an automobile manufacturer s. Paper used by Computer Department in processing various managerial reports t. Seed for grain farmer u. Health insurance premiums paid for factory workers v. Costs of operating a research laboratory w. Costs for television advertisement x. Executive bonus for vice president of marketing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PA: Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable...

See similar textbooks

Related questions

Concept explainers

Question

Classifying Costs

The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense.

Costs	Classification
a. Salary of quality control supervisor
b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.
c. Factory operating supplies
d. Depreciation of factory equipment
e. Hourly wages of warehouse laborers
f. Wages of company controller’s secretary
g. Maintenance and repair costs for factory equipment
h. Paper used by commercial printer
i. Entertainment expenses for sales representatives
j. Protective glasses for factory machine operators
k. Sales commissions
l. Cost of hogs for meat processor
m. Cost of telephone operators for a toll-free hotline to help customers operate products
n. Hard drives for a microcomputer manufacturer
o. Lumber used by furniture manufacturer
p. Wages of a machine operator on the production line
q. First-aid supplies for factory workers
r. Tires for an automobile manufacturer
s. Paper used by Computer Department in processing various managerial reports
t. Seed for grain farmer
u. Health insurance premiums paid for factory workers
v. Costs of operating a research laboratory
w. Costs for television advertisement
x. Executive bonus for vice president of marketing

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions