Purchase Solution

Important information about Classification of Manufacturing Costs

Not what you're looking for?

Ask Custom Question

Accounting: Concepts & Applications, by Albrecht. Chapter 15: Exercise 15-23 Cost Classifications - Cost Classifications

Classify the costs as (1) product or period; (2) variable or fixed; and (3) for those that are product costs, as direct materials, direct labor, or manufacturing overhead.

The following are costs associated with manufacturing firms, merchandising firms, or service firms:

a. Miscellaneous materials used in production
b. Salesperson's commission in a real estate firm
c. Administrators' salaries for a furniture wholesaler
d. Administrators' salaries for a furniture manufacturer
e. Freight costs associated with acquiring inventories for a grocery store
f. Office manager's salary in a doctor's office
g. Utilities for the corporate offices of a toy manufacturer
h. Line supervisor's salary for a clothing manufacturing firm
i. Training seminar for sales staff of a service firm
j. Fuel used in a trucking firm
k. Paper used at a printing business
l. Oil for machinery at a plastics manufacturing firm
m. Food used at a restaurant
n. Windshields used for a car manufacturer

Purchase this Solution
Solution Summary

Each of the costs associated with manufacturing firms are classified as the problem requests including some explanations as necessary for understanding.

Solution Preview

First the definitions:

Product costs become part of the cost of product but period costs are required to product the product.

Variable costs change with production levels but fixed costs don't (within a given range).

If a cost can't be defined as direct material or labor, then it is manufacturing overhead (also known as factory overhead or production overhead.

a. Miscellaneous materials used in production
Product cost, variable, ...

Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Describe difference between financial and managerial account

    It is impossible to evaluate costs without the detailed information about the nature and classification of the costs.

  • Inventory Management for Houts Plastics

    Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below (see attachment).

  • Cost Classification/Target Profit

    From this information make appropriate assumptions about cost behavior and assume that the direct labor costs vary directly with the number of units produced. How many units must the company sell in order to earn a pretax profit of $500,000.00?

  • Managerial versus Financial Accounting

    It is impossible to evaluate costs without the detailed information about the nature and classification of the costs.

  • Important Information about Management Accounting

    323768 Important Information about Management Accounting 1) a. Identify the five steps in the lean thinking model. b. Which of these steps do you think is the most challenging for the organization? Explain your reasoning.

  • Three Part Classification Manufacturing Costs

    157725 Three Part Classification Manufacturing Costs Springfield Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and indirect

  • Can the numbers lie? A management accountant discussion of fad-like innovations.

    It is impossible to evaluate costs without the detailed information about the nature and classification of the costs.

  • An Explanation of Cost Accounting

    It is impossible to evaluate costs without the detailed information about the nature and classification of the costs. For a practical application in a non-manufacturing field, let's use a law office.

  • Products and Period Costs Classification

    398173 Products and Period Costs Classification M17-14 Classification of products and Periods Costs Classify the following costs incurred by a manufacturer of golf clubs as product costs or period costs.

View More Related Solutions