The costs listed below are related to a manufacturer of all-natural ice cream. Indicate whether the costs are direct materials (DM), direct labor (DL) or overhead (OH). cream depreciation on factory equipment vanilla

The costs listed below are related to a manufacturer of all-natural ice cream. Indicate whether the costs are direct materials (DM), direct labor (DL) or overhead (OH). cream depreciation on factory equipment vanilla

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 4MC: Which of the following is a conversion cost? raw materials direct materials administrative expenses...

See similar textbooks

Related questions

Q: Identify which of the following transactions andevents are product costs and which are period…

A: The costs which can directly be attributed to a product is known as Product costs. The costs which…

Q: In a manufacturing company, overhead allocations are made for three reasons: (1) to determine the…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Classifying costsThe following is a list of costs incurred by several businesses:a. Salary of…

A: Product cost is the cost that is associated with product whereas, the period cost is the cost that…

Q: Diez Company produces sporting equipment, including leather footballs. Identify each of the…

Q: Which of the following costs is a direct cost for a manufactured product? A) Depreciation Expense…

A: The direct cost is expense that can be directly traceable to specific product.

Q: Classify each of the following as direct or indirect with respect to traceability to product and as…

A: Direct costs are costs that are directly with the production and manufacturing of goods. Indirect…

Q: Identify each of the following costs as either direct materials (DM), direct labor (DL), or factory…

Q: Use a / to categorize each of the following costs. You may have more than one / for each item.…

A: There are majorly three types of costs such as variable costs, fixed costs and semi-variable costs.…

Q: Identify each of the following costs as either direct materials (DM), direct labor (DL), or factory…

A: Factory overhead: It is the cost that incurred during the manufacturing process and does not include…

Q: Identify each of the preceding costs as either a product or a period cost. If the cost is a product…

A: The question is based on the concept of Cost Accounting.

Q: Which of the following costs is not a product cost? * 1 point a. Depreciation on the plant installed…

A: Production or product costs allude to the expenses acquired by a business from assembling a product…

Q: A car manufacturer incurs the following costs. Classify each cost as either a product or period…

A: The costs are classified as direct, indirect and factory overhead cost.

Q: IDENTIFY THE FOLLOWING COST FOR THE PRODUCTION AND SALE OF A LAWN MOWER COMPANY WHETHER DIRECT…

A: Cost of production is the total cost incurred by the producer for the manufacturing of goods or for…

Q: Which of the following costs would be included in the cost of a manufactured product according to…

A: Under variable costing method, only variable cost considered and included in production cost and…

Q: The cost of a manufactured product (product cost) generally consists of which of the following?…

A: Product Cost - Product Cost is the cost incurred by the organization for the product of the entity.…

Q: What is the total manufacturing overhead cost incurred by Pro-Leather Company during the period?…

A: Manufacturing Overhead:-These is the total cost incurred for the production of goods which includes…

Q: Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing unit…

A: Since multiple questions are posted only the first question (Hummer Company) is answered. kindly…

Q: Product vs Period Cost Classifications Mr. Suncat has hired you to help him determine his product…

A: Product costs of the goods are those specifically connected to the manufacturing of the product or…

Q: Indicate whether the following costs of P r oct er & Gamb le , a maker of consumer products, would…

Q: Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a…

A: Direct material refers to the cost of material that is directly identifiable with the product…

Q: Work in progress refers to: O machine parts in a parts-manufacturing business O incomplete units of…

A: Following is the answer to given question

Q: Charles has provided some of the costs he expects to incur as follows. Decide on the classifications…

A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Classifying Costs as Product or Period Costs For apparel manufacturer Abercrombie & Fitch, Inc.,…

A: Product costs: Product costs are the costs which are incurred in the production of the goods. These…

Q: Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of…

A: The cost applied in production can be classified as Direct materials, direct labor and factory over…

Q: Depreciation of a factory equipment is treated as ____, while deprecation of an automobile used for…

A: Manufacturing overhead is the indirect cost that is spent in the manufacturing process. Examples of…

Q: The costs listed below are related to a manufacturer of all-natural ice cream. Indicate whether the…

A: Total product cost includes Direct materials cost, direct labor costs, and Manufacturing Overhead…

Q: Classification of Costs Following is a list of costs from Oakland Company, a furniture…

Q: Which of the following is not an example of a cost that varies in total as the number of units…

A: Option a is correct. As the production happens there is usage of machinery which will increase the…

Q: IK AABlasia's Factory, they sometimes use minor matorials not traceable directly to the product,…

A: Introduction:- Costs are classified into two types as follows:- Direct material:-Which are directly…

Q: Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: Classify the following items as Direct materials, Selling and administrative expense, Factory…

A: Direct materials: Direct materials are the raw materials that are directly associated with the…

Q: Match the items below for a bakery to the type of cost. Direct materials Direct labor Factory…

A: Direct material - direct material easily identified to the unit of production Direct labor -…

Q: A car manufacturer incurs the following costs. Classify each cost as either a product or period…

A: Introduction: Cost classification is the process of categorizing a company's costs so that the…

Q: For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as…

Q: Select the appropriate classification for each of the costs incurred by a manufacturer of…

Q: Classifying Costs The following is a list of costs incurred by several manufacturing companies.…

A: PLEASE LIKE THE ANSWER S. No Cost Classification a Bonus for Vice President…

Q: Select each of the items with the best description of its purpose. Description Items 1. Holds…

A: The production process involves steps which start from material requisition and ends with the…

Q: Required: (a) Compute the equivalent units for direct materials (From Moulding & Direct materials…

A: Equivalent units of production: In process costing, all inputs could not be processed into final…

Q: Indicate whether each of the following costs associated with production would be classified as…

A: Direct material cost is that costs which is related to the direct use of the materials. Direct…

Q: Ethan Allen Interiors, Inc. is a leading manufacturer and retailer of furniture and home decorating…

Q: For each of the following costs incurred in a manufacturing operations, indicate whether the costs…

A: Following is the answer to the given question

Q: State whether and how the following situations are possible or not on introducing a JIT system of…

A: Just in time is an inventory costing system used to value inventories where it has been used to…

Q: For apparel manufacturer Abercrobmie & Fitch, Inc., classify each of the following costs as either a…

A: Period costs and product costs are two categories of costs for a company that are incurred in…

Q: Which of the following production operations would be most likely to employ a process cost system?…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The costs listed below are related to a manufacturer of all-natural ice cream. Indicate whether the…

A: Direct labour cost is the cost of labour which is directly engaged in manufacture or production of…

Q: Indicate whether each of the following costs of an automobile manufacturer would be classified as…

A: Direct material cost is that material that is directly related to the production activities. Direct…

Q: Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for an automobile…

A: Prime cost: Prime cost refers to a cost which is directly involved in the process of manufacturing…

Q: Cost classifications For each of the following costs, check the column(s) that most likely applies…

A: Fixed cost: A fixed cost is a cost incurred by a company that remains fixed irrespective of the…

Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

The costs listed below are related to a manufacturer of all-natural ice cream. Indicate whether the costs are direct materials (DM), direct labor (DL) or overhead (OH).

cream

depreciation on factory equipment

vanilla

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

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

The costs listed below are related to a manufacturer of all-natural ice cream. Indicate whether the costs are direct materials (DM), direct labor (DL) or overhead (OH). factory supervisor's salary sugar machine oil for mixing machines machine operator wages
Classify each of the following costs as either unit-level, batch-level, product-level, or facility-level. a. Engineering costs for a new product b. Order processing c. Depreciation on factory d. Direct labor e. Shipment of an order to a customer f. Product line manager salary g. Machine setup costs that are incurred whenever a new production order is started h. Patent for new product ore help Product-level Batch-level or Unit-level or Facility-level Facility-level Unit-level Unit-level Batch-level Batch-level or Facility-level Batch-level or Unit-level Batch-level or Unit-level or Facility-level Facility-level Facility-level or Product-level Facility-level or Unit-level Product-level Unit-level all
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant b. Licensing payments for use of Disney characters on children products c. Maintenance supplies d. Packaging materials e. Paper used in bath tissue f. Plant manager salary for the Iowa City, Iowa, plant g. Resins for body wash products h. Salary of process engineers I. Scents and fragrances used in making soaps and detergents j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Resins for body wash products b. Scents and fragrances used in making soaps and detergents c. Plant manager salary for the Iowa City, Iowa, plant d. Depreciation on the Auburn, Maine, manufacturing plant e. Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plant f. Maintenance supplies g. Packaging materials, which are a significant portion of the total product cost h. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant i. Wages paid to Packaging Department employees in the Bear River City, Utah, paper products plant j. Salary of process engineers
Identify each of the following costs as either direct materials (DM), direct labor (DL), or factory overhead(FO). The company manufactures tennis balls. Depreciation—Factory equipment.
Classifying 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 guide
Question Content Area Which of the following would be included in the cost of a product manufactured according to absorption costing? a. sales salaries b. advertising expense c. office supplies costs d. depreciation expense on factory building
1. Prime vs conversion cost. For each of the following costs incurred in a manufacturing operation, indicate whether they are included in prime costs (P), conversion costs (C), or both (B). a. Property taxes on the factory C b. Wages for drivers delivering the final product from production plant to customers C c. Assembly line worker's salary B d. Direct materials used in production process P e. Lubricating oil for plant machines P f Fixed manufacturing overhead
Which of the following is not a cost resulting from a unit-level activity? a) The cost of electricity to power manufacturing equipment. b) The indirect cost of glue used on each product. c) The cost of sending monthly statements to customers. d) The per unit cost of packaging goods.
Identify each of the following costs as either a product cost or a period cost. Factory maintenance sales commissions depreciation factory equipment
Which of the following is a prime cost? A. indirect materials B. direct labor C. administrative expenses D. factory depreciation expenses
Assign each of the following expenses to either the machine setup cost pool or the factory cost pool: A. indirect materials B. inspections C. factory insurance D. machine depreciation E. machine setup (indirect labor) F. machine setup (indirect material)