Classify the following costs of a book publisher as product or period. Product costs should be further
Question:
Classify the following costs of a book publisher as product or period. Product costs should be further classified as prime or conversion.
Product or period Prime or conversion
a. Costs of rolls of blank paper
b. Cost of cardboard displays for bookstores
c. wages of accounting clerks that process production payroll
d. utility costs at the printing facility.
e. salary or pressroom supervisor.
f. shipping charges for carbon black inks to be used.
g. cost of temporary workers hired for production work to get highly anticipated best seller printed on time.
h. cost to ship books to barnes $ Noble.
i. salary of editor-in-chief of publishing company.
j. costs of quality testing during printing process.
Classify the following costs as fixed or variable
fixed or variable
a. costs of rolls of blank papers.
b. wages of accounting clerks that process production payroll
c. salary of pressroom supervisor.
d. shipping charges for carbon black inks to be used.
e. cost of temporary hourly workers hired for production work to get highly anticipated best seller printed on time.
f. cost to ship books to barneds $ noble.
g. salary of editor-in-chief of publishing company.
h. costs of quality testing during printing process.
i. annual rent on printing facility.
classify the following items as being either product costs or period costs. if a product cost is identified, indicate if the cost is prime or conversion.
Product or period prime, conversion or N/A
a. cost of machinery repairs.
b. cost of fabric for a clothing manufacturer.
c. factory insurance cost.
d. rent on factory building.
e. cost of advertising the product.
f. cost of lubricating oils for equipment.
g. wages paid to a machine operator.
h. cost of utilities in the factory building.
i. wages paid to factory foreman.
j. wages paid to the president's secretary.
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess