Chapter 1 Class problems

Chapter 1 Class problems - Chapter 1 Managerial Accounting...

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Unformatted text preview: Chapter 1 Managerial Accounting and Cost Concepts Brief Exercise 1-2 (10 minutes) 1. The cost of a hard drive installed in a computer: direct materials. 2. The cost of advertising in the Puget Sound Computer User newspaper: selling. 3. The wages of employees who assemble computers from components: direct labor. 4. Sales commissions paid to the companys salespeople: selling. 5. The wages of the assembly shops supervisor: manufacturing overhead. 6. The wages of the companys accountant: administrative. 7. Depreciation on equipment used to test assembled computers before release to customers: manufacturing overhead. 8. Rent on the facility in the industrial park: a combination of manufacturing overhead, selling, and administrative. The rent would most likely be prorated on the basis of the amount of space occupied 1-1 by manufacturing, selling, and administrative operations. 1-2 Brief Exercise 1-3 (15 minutes) Product Cost Period Cost 1. Depreciation on salespersons cars.......................... X 2. Rent on equipment used in the factory..................... X 3. Lubricants used for machine maintenance............... X 4. Salaries of personnel who work in the finished goods warehouse.................................................. X 5. Soap and paper towels used by factory workers at the end of a shift.................................................... X 6. Factory supervisors salaries.................................... X 7. Heat, water, and power consumed in the factory...... X 8. Materials used for boxing products for shipment overseas (units are not normally boxed)................ X 9. Advertising costs...................................................... X 10. Workers compensation insurance for factory employees............................................................. X 11. Depreciation on chairs and tables in the factory lunchroom.............................................................. X 12. The wages of the receptionist in the administrative offices.................................................................... X 13. Cost of leasing the corporate jet used by the company's executives............................................company's executives....
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This note was uploaded on 01/11/2012 for the course ACC 252 taught by Professor Franklin during the Fall '08 term at Syracuse.

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Chapter 1 Class problems - Chapter 1 Managerial Accounting...

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