Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Question
Chapter 1, Problem 3E
To determine
Indicate whether the given items are properly classified as part of
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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. Automobile engine
b. Brake pads
c. Depreciation of robotic assembly line equipment
d. Glass for front and rear windshields
e. Safety helmets and masks for assembly line workers
f. Salary of quality control inspector
g. Steering wheel
h. Tires
i. Wages of assembly line workers
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. Depreciation of robotic assembly line equipment
b. V8 automobile engine
c. Steering wheel
d. Wheels
e. Painting safety masks for employees working in the paint room
f. Salary of test driver
g. Glass used in the vehicle’s windshield
h. Wages of assembly line worker
Which of the following would most likely be included as part of manufacturing overhead in the production
of sports cars?
Depreciation on the factory building
Commissions paid to Sales Manager
Steel and glass costs
Hourly wages of cost analyst
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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Similar questions
- 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: a) Depreciation of robotic assembly line equipment b) V8 automobile engine c) Steering wheel d) Wheels e) Painting safety masks for employees working in the paint room f) Salary of test driver g) Glass used in the vehicle's windshield h) Wages of assembly line worker Note: material and labor costs are directs costs that could be easily traced to a product. Factory overhead costs are indirect costs that are not easily traced to a product and are generally used in the manufacturing process.arrow_forwardClassifying 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 engineersarrow_forwardWhich of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks?a. Plant manager’s salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassembliesb. Depreciation on Flat Rock, Michigan, assembly plantc. Dividends paid to shareholdersd. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plante. Leather to be used on vehicles that have leather interiorsf. Depreciation on mechanical robots used on the assembly lineg. Consultant fees for a study of production line efficiencyh. Dealership sales incentivesi. Vice president of human resources’ salaryj. Property taxes on the Detriot, Michigan, headquarters buildingarrow_forward
- 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:a. Wheelsb. Glass used in the vehicle’s windshieldc. Wages of assembly line workerd. V8 automobile enginee. Depreciation of robotic assembly line equipmentf. Steering wheelg. Painting safety masks for employees working in the paint roomh. Salary of test driverarrow_forwardIndicate 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:a. Resins for body wash productsb. Scents and fragrances used in making soaps and detergentsc. Plant manager salary for the Iowa City, Iowa, plantd. Depreciation on the Auburn, Maine, manufacturing plante. Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plantf. Maintenance suppliesg. Packaging materials, which are a significant portion of the total product costh. Wages of production line employees at the Pineville, Louisiana, soap and detergent planti. Wages paid to Packaging Department employees in the Bear River City, Utah, paper products plantj. Salary of process engineersarrow_forwardWhich of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5) Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plantarrow_forward
- Classifying Costs as Factory Overhead Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks? Item Part of Factory Overhead: Yes/No a. Plant manager’s salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies b. Depreciation on Flat Rock, Michigan, assembly plant c. Dividends paid to shareholders d. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant e. Leather to be used on vehicles that have leather interiors f. Depreciation on mechanical robots used on the assembly line g. Consultant fees for a study of production line efficiency h. Dealership sales incentives i. Vice president of human resources’s salary j. Property taxes on the Dearborn, Michigan, headquarters buildingarrow_forwardWhich of the following is a fixed cost in an automobile manufacturing plant? C. Sales commissions a. Administrative salaries b. Flectricity used by assembly-line machinas d. Windows for each car produced.arrow_forwardWhich of the following items are properly classified as part of factory overhead for Ford Motor Copmany, a maker of heavy automobiles and trucks? A. Plant manager’s salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies B. Depreciation on Flat Rock, Michigan, assembly plant C. Dividends paid to shareholders D. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant E. Leather to be used on vehicles that have leather interiors F. Depreciation on mechanical robots used on the assembly line G. Consultant fees for a study of production line efficiency H. Dealership sales incentives I. Vice president of human resources’s salary J. Property taxes on the Dearborn, Michigan, headquarters buildingarrow_forward
- State whether and how the following situations are possible or not on introducing a JIT system of production in an automobile factory. (1) Increased cost of inspection at the production shop floor where suppliers' components have been delivered. (ii) Increase in raw materials (purchase) cost. (iii) Reduction in the variety of output produced.arrow_forwardWhich of the following are a product (manufacturing) cost? (check all that apply) Materials that become part of the product Materials used to repair the machines in the factory The cost for employees who make the product The cost for employees who supervise the making of a product The utilities in the factory The utilities in the office The cost to provide vending machines in the factory Depreciation on photocopiers in the sales department responsible for selling the productarrow_forwardA car manufacturer incurs the following costs. Classify each cost as either a product or period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. Costs Rent on factory building Steering wheels used in cars Property taxes on office building Office building insurance used up Factory electricity Advertising Depreciation on factory machine Batteries for electric cars Steel for cars Leather for car seats Cost Classification.arrow_forward
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