Solutions_Jan16

Solutions_Jan16 - Exercise 2-1 (15 minutes) 1. The wages of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 2-1  (15 minutes) 1. The wages of employees who build the sailboats: direct labor cost. 2. The cost of advertising in the local newspapers: marketing and  selling cost. 3. The cost of an aluminum mast installed in a sailboat: direct  materials cost. 4. The wages of the assembly shop’s supervisor: manufacturing  overhead cost. 5. Rent on the boathouse: a combination of manufacturing overhead,  administrative, and marketing and selling cost. The rent would  most likely be prorated on the basis of the amount of space  occupied by manufacturing, administrative, and marketing  operations. 6. The wages of the company’s bookkeeper: administrative cost. 7. Sales commissions paid to the company’s salespeople: marketing  and selling cost. 8. Depreciation on power tools: manufacturing overhead cost.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Exercise 2-2  (15 minutes) Product  (Inventoriable)  Cost Period  Cost 1. The cost of the memory chips used in a  radar set. .................................................... X 2. Factory heating costs. ................................... X 3. Factory equipment maintenance costs. ........ X 4. Training costs for new administrative  employees. ................................................. X 5. The cost of the solder that is used in  assembling the radar sets. ......................... X 6. The travel costs of the company’s  salespersons. ............................................. X 7. Wages and salaries of factory security  personnel. .................................................. X 8. The cost of air-conditioning  executive offices. ........................................ X 9. Wages and salaries in the department that  handles billing customers. .......................... X 10. Depreciation on the equipment in the fitness  room used by factory workers. ................... X   11. Telephone expenses incurred by factory  management. ............................................. X 12. The costs of shipping completed radar sets  to customers. .............................................. X 13. The wages of the workers who assemble  the radar sets. ............................................ X 14. The president’s salary.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Solutions_Jan16 - Exercise 2-1 (15 minutes) 1. The wages of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online