ACCT 346 Week 1 Homework (graded)

DeVry University ACCT346 Weekly Assignment Week 1 Directions: Your assignment this week is to answer the four questions below. Please note that Question 4 contains multiple parts. Please show your work for full cr ...

DeVry University ACCT346 Weekly Assignment Week 1 Directions: Your assignment this week is to answer the four questions below. Please note that Question 4 contains multiple parts. Please show your work for full credit on Questions 4b - 4e. 1. Identify whether each of the items below is a Product Cost or Period Cost: (1/2 point each, total 5 oints) Factory insurance Product Interest on bank loan Period Eggs, salt, water used for baking Product Depreciation on bake ovens Product Paper wrappers for bread Product Delivery truck costs Period Advertising costs Period Factory supervisor salaries Product Sales Commissions Period Flour used in baking bread Product 2. Identify whether each of the items below is a Direct Cost or Indirect Cost: (1/2 point each, total 5 points) Factory insurance Indirect Baker's wages Direct Eggs used for baking Direct Depreciation on bake ovens Indirect Paper wrappers for bread Indirect Cleaning materials for bake ovens Indirect Utilities used in factory Indirect Factory supervisor salaries Indirect Small amount of salt used Indirect Flour used in baking bread Direct 3. Identify whether each of the below is a Fixed Cost or Variable Cost: (1/2 point each, total 5 points) Shipping costs for bread Variable Cost of fuel for delivery truck Fixed Factory rent Fixed Factory insurance Fixed Maintenance on delivery truck Fixed Sales commissions Variable Hourly wages paid to baker's assistant Variable Oven depreciation Fixed Cost of fruit for cake topping Variable Factory utilities Fixed 4. Classify each as direct material, direct labor, indirect labor, indirect labor, other manufacturing overhead or period cost, and then answer the 5 questions below: 4a. Classify each cost (the first one is done for you): (5 points total) An airline manufacturer incurred the following costs last month (in thousands of dollars): Direct Material Direct Labor Indirect Material Indirect Labor Other Manufacturing Overhead Period Cost a. Depreciation on forklifts ........................................................................... $60 $60 b. Property tax on corporate marketing office ............................................. $30 $30 c. Cost of warranty repairs ............................................................................ $220 $220 d. Factory janitors’ wages ............................................................................. $10 $10 e. Cost of designing new plant layout .......................................................... $190 $190 f. Machine operators’ health insurance ....................................................... $40 $40 g. Airplane seats ........................................................................................... $270 $270 h. Depreciation on administrative offices ..................................................... $70 $70 i. Assembly workers’ wages ......................................................................... $670 $670 j. Plant utilities ............................................................................................. $110 $110 k. Production supervisors’ salaries ................................................................ $160 $160 l. Jet engines ................................................................................................ $1,100 $1,100 m. Machine lubricants .................................................................................... $20 $20 Indirect materials + Indirect labor + Other Manufacturing Overhead Direct maerials + Direct labor + Indirect materials + Indirect labor + Other Manufacturing Overhead Direct maerials + Direct labor Direct labor + Indirect materials + Indirect labor + Other Manufacturing Overhead