Classifying Costs The following is a list of costs that were incurred in the production and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: Classify each cost as either a product cost or a 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 a. Annual bonus paid to the chief financial officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of the flight data recorder (the black box) for the airplane e. Cost of normal scrap from production of the airplane body f. Cost of small replicas of the airplane used to promote and market the airplane g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the final product i. Depreciation on factory equipment j. Hourly wages for janitorial staff for the factory k. Hydraulic pumps used in the airplane's flight control system 1. Instrument panel installed in the airplane cockpit m. Interior trim material used throughout the airplane cabin Classification K Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: Classify each cost as either a product cost or a 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 a. Annual bonus paid to the chief financial officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of the flight data recorder (the black box) for the airplane e. Cost of normal scrap from production of the airplane body f. Cost of small replicas of the airplane used to promote and market the airplane g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the final product i. Depreciation on factory equipment j. Hourly wages for janitorial staff for the factory k. Hydraulic pumps used in the airplane's flight control system 1. Instrument panel installed in the airplane cockpit m. Interior trim material used throughout the airplane cabin Classification K
Expert Answer:
Answer rating: 100% (QA)
a Annual bonus paid to the chief financial officer of the company Period cost Administrative expense ... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
Students also viewed these accounting questions
-
The following is a list of costs that were incurred in the production and sale of large commercial airplanes: a. Salary of chief compliance officer of company b. Power used by painting equipment c....
-
The following is a list of costs that were incurred in the production and sale of boats: a. Commissions to sales representatives, based upon the number of boats sold. b. Cost of boat for grand prize...
-
Recruitment and selection involves the following except: a) building a pool of candidates. b) applicants completing application forms. c) downsizing the organization. d) employment planning and...
-
Klein's Packaging Department had the following information at January 31. All direct materials are added at the end of the conversion process. The units in ending work in process inventory were only...
-
Consider two weighted coins. Coin 1 has a probability of 0.3 of turning up heads, and coin 2 has a probability of 0.6 of turning up heads. A coin is tossed once; the probability that coin 1 is tossed...
-
Suppose you make 15 equal annual deposits of \($1,000\) each into a bank account paying 5% interest per year. The first deposit will be made one year from today. How much money can be withdrawn from...
-
Calculate how much disk space (in sectors, tracks, and surfaces) will be required to store 300,000 120-byte logical records if the disk is fixed sector with 512 bytes/sector, with 96 sectors/track,...
-
Create an Income statement, Retained earnings statement, and Classified balance sheet using the following trial balance sheet. ACCOUNT Cash Accounts Receivable Moped Scooter Accumulated Depreciation...
-
One way to see whether this procedure will be successful is to split the original data set into two subsets: one subset for estimation and one subset for validation. A regression equation is...
-
A line with d.r's (2,7,-5) is drawn to intersect the lines 3. x-5 y-7 z+2 and -3 x+3 y-3 z-6 -1 2 4 at P and Q respectively. Length of PQ is 1) V78 2) J77 3) 54 4) 74 . If the angle between the line...
-
Is there any basis for permitting a higher-than-usual hourly rate for an attorney who is an expert in special education law?
-
How is the sukuk construct used in Shariah-compliant long-term financing?
-
Educational programming for students who are not disabled could potentially be adversely affected if scarce resources have to be used for expensive residential placements. Could such a situation be...
-
What are market-based forecasts?
-
What changes should be made to the IDEA? To NCLB?
-
Suppose we want to find a point on the unit circle centered at the origin to minimize -x? -2x+y. That is, we wish to solve the following equality constrained problem: -x - 2x + y x? + y? = 1 P min...
-
A researcher reports a significant two-way between-subjects ANOVA, F(3, 40) = 2.96. State the decision to retain or reject the null hypothesis for this test.
-
The Filling Department of Lilac Skin Care had 4,000 ounces in beginning work in process inventory (70% complete). During the period, 42,800 ounces were completed. The ending work in process inventory...
-
Choco La Ti-Da Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (4,500 bars) are as...
-
During 2016, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Assume that as of December 31, 2016, the Hawking Inc. stock had a market value of...
-
A rifle is aimed horizontally at a target \(100 \mathrm{~m}\) away, and the bullet leaves the rifle barrel at \(650 \mathrm{~m} / \mathrm{s}\). If the gun is aimed right at the bull's-eye, by how...
-
On a rifle that has a telescopic sight, the telescope is usually not parallel to the barrel of the rifle. The angle the telescope makes with the barrel has to be adjusted for the distance to the...
-
A package is dropped from a helicopter traveling at \(15 \mathrm{~m} / \mathrm{s}\) (horizontally) at an altitude of \(200 \mathrm{~m}\), but the parachute attached to the package fails to open. (a)...
Study smarter with the SolutionInn App