HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
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Chapter 2, Problem 2.33E
Inventoriable costs versus period costs. Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), KitchenAid (a manufacturing-sector company), and HughesNet (a service-sector company):
- a. Cost of phones and computers available for sale in Best Buy’s electronics department
- b. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant
- c.
Depreciation on HughesNet satellite equipment used to provide its services - d. Electricity used to provide lighting for Best Buy’s store aisles
- e. Wages for personnel responsible for quality testing of the KitchenAid products during the assembly process
- f. Salaries of Best Buy’s marketing personnel planning local-newspaper advertising campaigns
- g. Perrier mineral water purchased by HughesNet for consumption by its software engineers
- h. Salaries of HughesNet area sales managers
- i. Depreciation on vehicles used to transport KitchenAid products to retail stores
- 1. Distinguish between manufacturing-, merchandising-, and service-sector companies.
Required
- 2. Distinguish between inventoriable costs and period costs.
- 3. Classify each of the cost items (a−i) as an inventoriable cost or a period cost. Explain your answers.
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Each of the following cost items pertains to one of thesecompanies: General Electric(a manufacturing-sector company), Safeway (a merchandising-sector company),and Google (a service-sector company):a. Perrier mineral water purchased by Safeway for sale to its customersb. Electricity used to provide lighting for assembly-line workers at a General Electricrefrigerator assembly plantc. Depreciation on Google’s computer equipment used to update directories of Websitesd. Electricity used to provide lighting for Safeway’s store aislese. Depreciation on General Electric’s computer equipment used for quality testing ofrefrigerator components during the assembly processf. Salaries of Safeway’s marketing personnel planning local-newspaper advertisingcampaignsg. Perrier mineral water purchased by Google for consumption by its softwareengineersh. Salaries of Google’s marketing personnel selling banner advertisingRequired:1. Distinguish between manufacturing-, merchandising-, and…
Q. Each of the following cost items pertains to one of these companies: General Electric (a manufacturing-sector company), Safeway (a merchandising-sector company), and Google (a service-sector company):
a. Perrier mineral water purchased by Safeway for sale to its customersb. Electricity used to provide lighting for assembly-line workers at a General Electric refrigerator assembly plantc. Depreciation on Google’s computer equipment used to update directories of Web sitesd. Electricity used to provide lighting for Safeway’s store aislese. Depreciation on General Electric’s computer equipment used for quality testing of refrigerator components during the assembly processf. Salaries of Safeway’s marketing personnel planning local-newspaper advertising campaignsg. Perrier mineral water purchased by Google for consumption by its software engineersh. Salaries of Google’s marketing personnel selling banner advertising
Required: Just Classify each of the cost items (a–h) as an inventoriable…
For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, or selling and administrative.
(a) Amortization of patents on factory machine
(b) Components used to make product A
(Select one)
(Select one)
(Select one)
(c) Direct materials used
(d) Factory utilities
(e) Property taxes - factory.
(f) The cost of a hard-drive installed in a computer for a computer assembling company
(g) The wages of employees who assemble computers from components
(h) The wages of the company's accountant
(i) Wages of the product tester
() Wages to assembly line A workers
(Select one)
(Select one)
(Select one)
(Select one)
(Select one)
(Select one)
(Select one)
Chapter 2 Solutions
HORNGRENS COST ACCOUNTING W/ACCESS
Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3QCh. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9QCh. 2 - What are three different types of inventory that...
Ch. 2 - Distinguish between inventoriable costs and period...Ch. 2 - Define the following: direct material costs,...Ch. 2 - Describe the overtime-premium and idle-time...Ch. 2 - Define product cost. Describe three different...Ch. 2 - What are three common features of cost accounting...Ch. 2 - Prob. 2.16MCQCh. 2 - Comprehensive Care Nursing Home is required by...Ch. 2 - Frisco Corporation is analyzing its fixed and...Ch. 2 - Year 1 financial data for the ABC Company is as...Ch. 2 - The following information was extracted from the...Ch. 2 - Computing and interpreting manufacturing unit...Ch. 2 - Direct, indirect, fixed, and variable costs....Ch. 2 - Classification of costs, service sector. Market...Ch. 2 - Classification of costs, merchandising sector....Ch. 2 - Classification of costs, manufacturing sector. The...Ch. 2 - Variable costs, fixed costs, total costs. Bridget...Ch. 2 - Variable and Fixed Costs. Consolidated Motors...Ch. 2 - Variable costs, fixed costs, relevant range. Gummy...Ch. 2 - Prob. 2.29ECh. 2 - Cost drivers and functions. The representative...Ch. 2 - Total costs and unit costs, service setting....Ch. 2 - Total and unit cost, decision making. Gayles...Ch. 2 - Inventoriable costs versus period costs. Each of...Ch. 2 - Computing cost of goods purchased and cost of...Ch. 2 - Cost of goods purchased, cost of goods sold, and...Ch. 2 - Flow of Inventoriable Costs. Renkas Heaters...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Interpretation of statements (continuation of...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Terminology, interpretation of statements...Ch. 2 - Labor cost, overtime, and idle time. David...Ch. 2 - Missing records, computing inventory costs. Ron...Ch. 2 - Comprehensive problem on unit costs, product...Ch. 2 - Prob. 2.46PCh. 2 - Cost classification; ethics. Paul Howard, the new...Ch. 2 - Prob. 2.48P
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