Managerial accounting

timer Asked: May 8th, 2018
account_balance_wallet $10

Question description

The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. 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.



a. Salary of quality control supervisor

b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.

c. Factory operating supplies

d. Depreciation of factory equipment

e. Hourly wages of warehouse laborers

f. Wages of company controller’s secretary

g. Maintenance and repair costs for factory equipment

h. Paper used by commercial printer

i. Entertainment expenses for sales representatives

j. Protective glasses for factory machine operators

k. Sales commissions

l. Cost of hogs for meat processor

m. Cost of telephone operators for a toll-free hotline to help customers operate products

n. Hard drives for a microcomputer manufacturer

o. Lumber used by furniture manufacturer

Tutor Answer

School: UCLA

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