Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 1, Problem 5ME
To determine
Concept introduction:
To indicate:
The type of cost for each of the given costs
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Classification of Costs Following is a list of costs from Oakland Company, a furniture manufacturer:1. Wood used in chairs2. Salaries of inspectors3. Lubricant used in machinery4. Factory rent5. Wages of assembly workers6. Factory workers’ compensation insurance7. Sandpaper8. Fabric used for upholstery9. Property taxes on manufacturing plant10. Depreciation on machineryRequired Classify each cost as direct or indirect assuming that the cost object is each item manufactured.Also indicate whether each cost is a variable or fixed cost.
Classifying Costs as Materials, Labor, or Factory Overhead
Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:
Cost
Classification
a. Wheels
b. Glass used in the vehicle’s windshield
c. Wages of assembly line worker
d. V8 automobile engine
e. Depreciation of robotic assembly line equipment
f. Steering wheel
g. Painting safety masks for employees working in the paint room
h. Salary of test driver
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
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - What is the primary difference between financial...Ch. 1 - Prob. 2QCh. 1 - Why are traditional, GAAP-based financial...Ch. 1 - Prob. 4QCh. 1 - consider the area within a 3-mile radius of your...Ch. 1 - What are the three basic functions of management?Ch. 1 - How are the three basic management functions...Ch. 1 - What are ethics and why is ethical behavior...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - Prob. 12QCh. 1 - Why are businesses starting to incorporate...Ch. 1 - What factors does sustainability accounting...Ch. 1 - Think about your activities over the last week....Ch. 1 - Prob. 16QCh. 1 - Why is it important for managers to be able to...Ch. 1 - Prob. 18QCh. 1 - Prob. 19QCh. 1 - Explain the difference between relevant and...Ch. 1 - Prob. 21QCh. 1 - What are prime costs? Why have they decreased in...Ch. 1 - Prob. 23QCh. 1 - Why can't prime cost and conversion cost be added...Ch. 1 - Prob. 25QCh. 1 - Prob. 26QCh. 1 - Prob. 27QCh. 1 - Prob. 28QCh. 1 - Prob. 29QCh. 1 - Prob. 1MCCh. 1 - Prob. 2MCCh. 1 - Prob. 3MCCh. 1 - Prob. 4MCCh. 1 - Prob. 5MCCh. 1 - What is Garcia's total manufacturing cost? a....Ch. 1 - Prob. 7MCCh. 1 - What is Garcia's manufacturing overhead? a....Ch. 1 - Prob. 9MCCh. 1 - Which of the following would not be treated as a...Ch. 1 - MINI-EXERCISES Comparing Financial and Managerial...Ch. 1 - Prob. 4MECh. 1 - Prob. 5MECh. 1 - Prob. 6MECh. 1 - Prob. 8MECh. 1 - Prob. 9MECh. 1 - Prob. 10MECh. 1 - Identifying Direct and Indirect Costs for a...Ch. 1 - Prob. 12MECh. 1 - Identify sustainability issues affecting the...Ch. 1 - Classifying Costs Seth's Skateboard Company incurs...Ch. 1 - Calculation Costs Cotton White, Inc., makes...Ch. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Classifying Costs Blockett Company makes...Ch. 1 - Prob. 10ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Explaining Effects of Cost Misclassification Donna...Ch. 1 - Prob. 4.1GAPCh. 1 - Prob. 4.2GAPCh. 1 - Prob. 4.3GAPCh. 1 - Prob. 3.1GBPCh. 1 - Prob. 3.2GBPCh. 1 - Classifying Costs, Calculating Total Costs, and...Ch. 1 - Prob. 4.2GBPCh. 1 - Classifying Costs, Calculating Total Costs, and...
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