The following is a list of costs incurred by several manufacturing companies: Classify each of the following costs as product cost or 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: Costs Classification a. Annual picnic for plant employees and their families b. Cost of fabric used by clothing manufacturer c. Cost of plastic for a toy manufacturer d. Cost of sewing machine needles used by a shirt manufacturer e. Cost of television commercials f. Depreciation of copying machines used by the Marketing Department g. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules h. Depreciation of office building i. Depreciation of robotic equipment used to assemble a product j. Electricity used to operate factory machinery k. Factory janitorial supplies l. Fees charged by collection agency on past-due customer accounts m. Fees paid to lawn service for office grounds n. Maintenance costs for factory equipment o. Oil lubricants for factory plant and equipment p. Pens, paper, and other supplies used by the Accounting Department q. Repair costs for factory equipment r. Rent for a warehouse used to store work in process and finished products s. Salary of a physical therapist who treats plant employees t. Salary of the manager of a manufacturing plant u. Telephone charges by corporate office v. Travel costs of marketing executives to annual sales meeting w. Wages of a machine operator on the production line x. Wages of production quality control personnel

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 2E: Indicate whether the following costs of Procter Gamble (PG), a maker of consumer products, would be...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

The following is a list of costs incurred by several manufacturing companies:

Classify each of the following costs as product cost or 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:

Costs	Classification
a. Annual picnic for plant employees and their families
b. Cost of fabric used by clothing manufacturer
c. Cost of plastic for a toy manufacturer
d. Cost of sewing machine needles used by a shirt manufacturer
e. Cost of television commercials
f. Depreciation of copying machines used by the Marketing Department
g. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules
h. Depreciation of office building
i. Depreciation of robotic equipment used to assemble a product
j. Electricity used to operate factory machinery
k. Factory janitorial supplies
l. Fees charged by collection agency on past-due customer accounts
m. Fees paid to lawn service for office grounds
n. Maintenance costs for factory equipment
o. Oil lubricants for factory plant and equipment
p. Pens, paper, and other supplies used by the Accounting Department
q. Repair costs for factory equipment
r. Rent for a warehouse used to store work in process and finished products
s. Salary of a physical therapist who treats plant employees
t. Salary of the manager of a manufacturing plant
u. Telephone charges by corporate office
v. Travel costs of marketing executives to annual sales meeting
w. Wages of a machine operator on the production line
x. Wages of production quality control personnel

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