Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 4, Problem 3EB
The table shows a list of expenses involved in the production of custom snowboard bindings.
- For each item listed, state if the cost is manufacturing or sales and administration.
- If the cost is a
manufacturing cost , state if it is direct materials, direct labor, or manufacturingoverhead . - 1f the cost is a manufacturing overhead cost, state if it is indirect materials, indirect labor, or another type of manufacturing overhead.
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A list of expenses involved in the production of custom, professional lacrosse sticks are shown.
For each item listed, state whether the cost should be applied to manufacturing or sales and administration.
If the cost is a manufacturing cost, state whether it is direct materials, direct labor, or manufacturing overhead.
If the cost is a manufacturing overhead cost, state whether it is indirect materials, indirect labor, or another type of manufacturing overhead.
If an item is not applicable, select "NA".
Lacrosse StickProduction Costs
Manufacturingor Sales andAdministration Cost?
If Manufacturing:Direct Materials,Direct Labor, Overhead or Other?
If Overhead:Indirect Materials,Indirect Labor, or Other?
Carbon, fiberglass
Administrative building rent
Accountant salary
Factory building depreciation
Strings for the pocket
Advertising
Production supervisor salary
Paint for sticks…
The table below shows a list of costs for a company that produces custom, professional lacrosse sticks.
1. For each item listed, state whether the cost should be classified as product cost or period cost.
2. If the cost is a manufacturing cost, state whether it is DM, DL, or MO. otherwise select none.
3. If the cost is a manufacturing overhead cost, state whether it is IDM, IDL, or another type of manufacturing overhead, otherwise select none.
List of Costs
Product or Period Cost?
DM, DL. or MO
IDM, IDL, or Other?
Carbon, fiberglass
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Administrative building rent
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Accountant salary
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Factory building depreciation
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Strings for the pocket
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Advertising
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Production supervisor salary
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Paint for sticks
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Research and development costs
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Wages of person who strings the…
The direct labor cost required to produce the tote bags, combined with manufacturing overhead cost,is called .______________________________
Chapter 4 Solutions
Principles of Accounting Volume 2
Ch. 4 - Which of the following product situations is...Ch. 4 - A job order costing system is most likely used by...Ch. 4 - Which of the following is a prime cost? A....Ch. 4 - Which of the following is a conversion cost? raw...Ch. 4 - During production, to what are the costs in job...Ch. 4 - Which document lists the inventory that will be...Ch. 4 - Which document shows the cost of direct materials,...Ch. 4 - Which document lists the total direct materials...Ch. 4 - Which document lists the total direct labor used...Ch. 4 - Assigning indirect costs to specific jobs is...
Ch. 4 - In a job order cost system, which account shows...Ch. 4 - In a job order cost system, raw materials...Ch. 4 - In a job order cost system, overhead applied is...Ch. 4 - In a job order cost system, factory wage expense...Ch. 4 - In a job order cost system, utility expense...Ch. 4 - In a job order cost system, indirect labor...Ch. 4 - The activity base for service industries is most...Ch. 4 - A printing company manufactures notebooks of...Ch. 4 - Burnham Industries incurs these costs for the...Ch. 4 - Chocos Chocolates incurs these costs for the...Ch. 4 - How do job order costing and process costing...Ch. 4 - Why are product costs assigned to the product and...Ch. 4 - Is the cost of goods manufactured the same as the...Ch. 4 - From beginning to end, place these items in the...Ch. 4 - How is the predetermined overhead rate determined?Ch. 4 - How is the predetermined overhead rate applied?Ch. 4 - Why are the overhead costs first accumulated in...Ch. 4 - Why is the manufacturing overhead account debited...Ch. 4 - Match the concept on the left to its correct...Ch. 4 - When compared to manufacturing companies, service...Ch. 4 - Little Things manufactures toys. For each item...Ch. 4 - Table 4.3 shows a list of expenses involved in the...Ch. 4 - Burnham Industries incurs these costs for the...Ch. 4 - Marzons records show raw materials Inventory had a...Ch. 4 - Sterlings records show the work in process...Ch. 4 - Logo Gear purchased $2,250 worth of merchandise...Ch. 4 - A company estimates its manufacturing overhead...Ch. 4 - Job order cost sheets show the following costs...Ch. 4 - A new company started production. Job 10 was...Ch. 4 - K company production was working on Job 1 and Job...Ch. 4 - A company has the following transactions during...Ch. 4 - During the month, Job AB2 used specialized...Ch. 4 - Job 113 was completed at a cost of $5,000, and Job...Ch. 4 - A companys Individual job sheets show these costs:...Ch. 4 - A summary of material requisition slips and time...Ch. 4 - Abuah Goods manufactures clothing. For each item...Ch. 4 - Chocos Chocolates incurs the following costs for...Ch. 4 - The table shows a list of expenses involved in the...Ch. 4 - Masonrys records show the raw materials inventory...Ch. 4 - Steinways records show their work in process...Ch. 4 - Langstons purchased $3,100 of merchandise during...Ch. 4 - A company estimates its manufacturing overhead...Ch. 4 - Job order cost sheets show the following costs...Ch. 4 - A new company started production. Job 1 was...Ch. 4 - Inez has the following information relating to Job...Ch. 4 - A company has the following information relating...Ch. 4 - A company has the following transactions during...Ch. 4 - During the month, Job Arch2 used specialized...Ch. 4 - Job 113 was completed at a cost of $7,500, and Job...Ch. 4 - A companys individual job sheets show these costs:...Ch. 4 - A summary of materials requisition slips and time...Ch. 4 - For each item listed, state whether a job order...Ch. 4 - York Company Is a machine shop that estimated...Ch. 4 - Pocono Cement Forms expects $900,000 in overhead...Ch. 4 - Job cost sheets show the following information:...Ch. 4 - Complete the information in the cost computations...Ch. 4 - During the year, a company purchased raw materials...Ch. 4 - Freeman Furnishings has summarized its data as...Ch. 4 - Coops Stoops estimated its annual overhead to be...Ch. 4 - MountaIn Peaks applies overhead on the basis of...Ch. 4 - The actual overhead for a company is $74,539....Ch. 4 - When setting its predetermined overhead...Ch. 4 - The following data summarize the operations during...Ch. 4 - The following events occurred during March for...Ch. 4 - A movie production studio incurred the following...Ch. 4 - For each item listed, state whether a job order...Ch. 4 - Rulers Company is a neon sign company that...Ch. 4 - Event Forms expects $120,000 in overhead during...Ch. 4 - Summary information from a companys job cost...Ch. 4 - Complete the information in the cost computations...Ch. 4 - During the year, a company purchased raw materials...Ch. 4 - Freeman Furnishings has summarized its data as...Ch. 4 - Queen Bees Honey, Inc., estimated its annual...Ch. 4 - Mountain Tops applies overhead on the basis of...Ch. 4 - The actual overhead for a company is $73,175....Ch. 4 - When setting its predetermined overhead...Ch. 4 - The following data summarize the operations during...Ch. 4 - The Following events occurred during March for...Ch. 4 - A leather repair shop incurred the following...Ch. 4 - Can a company use both job order costing and...Ch. 4 - If a job order cost system tracks the direct...Ch. 4 - What are the similarities in calculating the cost...Ch. 4 - If a company bases its predetermined overhead rate...Ch. 4 - How do the job cost sheets act as a subsidiary...Ch. 4 - How is a job order cost system used in a service...
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- Table 4.3 shows a list of expenses involved in the production of custom, professional lacrosse sticks. For each Item listed, state whether the cost should be applied to manufacturing or sales and administration. 1f the cost is a manufacturing cost, state whether It Is direct materials, direct labor, or manufacturing overhead. If the cost is a manufacturing overhead cost, state whether it is indirect materials, indirect labor, or another type of manufacturing overhead.arrow_forwardClassifying costs Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as a guidearrow_forwardInstructions 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 factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an “X” in the appropriate column: Production Cost Period Cost Cost Direct Materials Cost Direct Labor Costs Factory Overhead Cost Selling Expense Administrative Expense The following is a list of costs that were incurred in the production and sale of lawn mowers: Attorney fees for drafting a new lease for headquarter offices Cash paid to outside firm for janitorial services for factory Commissions paid to sales representatives, based on the number of lawn mowers sold. Cost of advertising in a national magazine Cost of boxes used in packaging…arrow_forward
- 1. The table below shows a list of costs for a company that produces custom, professional lacrosse sticks. For each item listed, state whether the cost should be classified as product cost or period cost. If the cost is a manufacturing cost, state whether it is DM, DL, or MO, otherwise select none. If the cost is a manufacturing overhead cost, state whether it is IDM, IDL, or another type of manufacturing overhead, otherwise select none. List of Costs Product or Period Cost? DM, DL, or MO IDM, IDL, or Other? Carbon, fiberglass ["", ""] ["", "", "", ""] ["", "", "", ""] Administrative building rent ["", ""] ["", "", "", ""] ["", "", "", ""] Accountant salary ["", ""] ["", "", "", ""] ["", "", "", ""] Factory building depreciation ["", ""] ["", "", "", ""] ["", "", "", ""] Strings for the pocket ["", ""] ["", "", "", ""] ["", "", "", ""] Advertising ["", ""]…arrow_forwardTaken together, the direct materials cost and the direct labor cost required to produce tote bags iscalled_____________________arrow_forwardWheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as a guide. (If an answer does not apply, leave the box blank.) Product Product Period Cost DM DL MOH Prime Conversion Selling Admin. a. Metal used for rims X X b. Sales salaries c. Rent on factory d. Wages of assembly workers e. Salary…arrow_forward
- Identify each of the following costs as either direct materials (DM), direct labor (DL), or factory overhead(FO). The company manufactures tennis balls. Factory maintenance.arrow_forwardFreeman Furnishings has summarized its data as shown: Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hoursarrow_forwardWhich of the following is a prime cost? A. indirect materials B. direct labor C. administrative expenses D. factory depreciation expensesarrow_forward
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