Exercises and Problems, Managerial Accounting

Assignment Help:
Exercises 2-1, 2-2, 2-3, 2-4

Problem 2-14
I didn’t write every question down out of the book just questions 2-1, and 2-2.
Exercise 2-1 classifying manufacturing cost.
Your boat, Inc., assembles custom sailboats from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales stores are housed in a Gig Harbor, Washington, boathouse. Below are listed some of the cost that are incurred at the company.
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct materials, manufacturing overhead, selling, or an administrative cost.
1. The wages of employee who build sailboats
2. The cost of advertising in the local newspaper
3. The cost of an aluminum mast installed in a sailboat
4. The wages of the assembly shop’s supervisor
5. Rent on the boathouse
6. The wages of the company’s bookkeeper.
7. Sales commissions paid to the company’s salesperson
8. Depreciation on power tools.
Exercise 2-2 Classification of most as period or Product cost.
Suppose that you have been given a summer job at Fairwings Avionics, a company that manufactures sophisticated radar set for commercial aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its tremendous growth. The bank requires financial statements before approving such a loan
Required
Classify each cost listed below as either a product cost or a period cost for purposes of preparing the financial statements for the bank.
1. The cost of the memory chips used in a radar set.
2. Factory heating cost
3. Factory equipment maintenance cost
4. Training cost of new administrative employees
5. The cost of the solder that is used in assembling the radar sets
6. The travel cost of the company’s salesperson.
7. Wages in salaries of factory security personnel
8. The cost of air conditioning executive offices
9. Wages and salaries in the department that handles billing customers
10. Depreciation on the equipment in the fitness room used by factory workers
11. Telephone expenses incurred by factory management
12. The cost of shipping completed radar set to customers
13. The wages of workers who assemble the radar sets
14. The president’s salary
15. Health insurance premiums for factory personnel.



Related Discussions:- Exercises and Problems

Accounting concepts, implications of applying accounting concepts wrongly

implications of applying accounting concepts wrongly

What is activity based management, ABM(Activity based management): ABM ...

ABM(Activity based management): ABM system is primary source of information for AM as a part of ABM identify value added and non-value added activity and management are also to

Maximum Price company would pay, Cause Company is planning to invest in a m...

Cause Company is planning to invest in a machine with a useful life of five years and no salvage value. The machine is expected to produce cash flow from operations of $20,000 in e

Corporate Governance., Discuss the dominant compensation philosophy, share ...

Discuss the dominant compensation philosophy, share value creation and the link between company size and executive pay. Solve Parmalat''s case, which may be found in reading No. 8.

Interger programing emuneration method, #questihow do we use emuneration me...

#questihow do we use emuneration method in interger programing

Operating leverage, How do you compare two companies operating leverage? Mu...

How do you compare two companies operating leverage? Must the sales volume be set the same or the net operating income?

Managerial Accounting, Computing equivalents units and assigning costs to c...

Computing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes CD p

How will you develop its presentation to appropriate markets, we want to re...

we want to realize our job dreams, we need to think about ourselves as products to be marketed, and in order to do this, we need to contextualize ourselves within the five Ps of ma

Cost concepts and estimations, in the past,the company had difficulties sep...

in the past,the company had difficulties separating semi-variable costs between varible and fixed costs.the company''s varible cost per unit consists of the cost of patrol,maintena

Case Study, Can someone do my case study for managerial accounting includin...

Can someone do my case study for managerial accounting including writing a sales report?

Matt

7/6/2013 1:11:35 PM

lksfdfWrite your message here..

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd