Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 4E
For apparel manufacturer Abercrombie & Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost:
- a. Advertising expenses
- b. Chief financial officer’s salary
- c.
Depreciation on office equipment - d. Depreciation on sewing machines
- e. Fabric used during production
- f. Factory janitorial supplies
- g. Factory supervisors’ salaries
- h. Property taxes on factory building and equipment
- i. Oil used to lubricate sewing machines
- j. Repairs and maintenance costs for sewing machines
- k. Research and development costs
- l. Sales commissions
- m. Salaries of distribution center personnel
- n. Salaries of production quality control supervisors
- o. Travel costs of media relations employees
- p. Utility costs for office building
- q. Wages of sewing machine operators
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Classifying Costs as Product or Period Costs
For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:
Item
Classification
a. Cost of information technology support for the corporate headquarters
b. Depreciation on sewing machines
c. Fabric used during production
d. Depreciation on office equipment
e. Advertising expenses
f. Repairs and maintenance costs for sewing machines
g. Salary of production quality control supervisor
h. Utility costs for office building
i. Sales commissions
j. Salaries of distribution center personnel
k. Wages of sewing machine operators
l. Factory janitorial supplies
m. Chief financial officer’s salary
n. Travel costs of media relations employees
o. Factory supervisors’ salaries
p. Oil used to lubricate sewing machines
q. Property taxes on factory building and equipment
For apparel manufacturer Abercrobmie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:
Research and development costs
Depreciation on sewing machines
Fabric used during production
Depreciation on office equipment
Advertising expenses
Repairs and maintenance costs for sewing machines
Salary of production quality control supervisor
Utility costs for office building
Sales commissions
Salaries of distribution center personnel
Wages of sewing machine operators
Factory janitorial supplies
Chief financial officer’s salary
Travel costs of media relations employees
Factory supervisors’ salaries
Oil used to lubricate sewing machines
Property taxes on factory building and equipment
Classifying Costs as Product or Period Costs
For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:
Item
Classification
a. Cost of information technology support for the corporate headquarters
b. Depreciation on sewing machines
c. Fabric used during production
d. Depreciation on office equipment
e. Advertising expenses
f. Repairs and maintenance costs for seving machines
g. Salary of production quality control supervisor
h. Utility costs for office building
i. Sales commissions
j. Salaries of distribution center personnel
k. Wages of sewing machine operators
I. Factory janitorial supplies
m. Chief financial officer's salary
n. Travel costs of media relations employees
o. Factory supervisors' salaries
Oil used to lubricate sewing machines
q. Property taxes on factory building and equipment
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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