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1. Indicate whether the following costs of Colgate-Palmolive company would be classified as directed materials costs, direct labor costs, or factory overhead cost:

a). Packaging materials
b. Depreciation on production machinery
c. Salary of process engineers
d. Depreciation on the Clarksville, Indiana, soap plant
e. Scent and fragrances
f. Wages of manufacturing employees
g. Resins for soap and shampoo products
h. Plants managers salary for the Morristown, Tennessee, toothpaste plant
i. Maintenance supplies
j, wages paid to Packing department employees

2, For apparel manufacturer Ann Taylor, Inc. classify each of the following costs as either a product cost or a period cost;

a. Factory janitorial supplies
b. Depreciation on office equipment
c. Advertising expenses
d. Fabrics used during production
e. Depreciation on sewing machines
f. Property taxes on factory building and equipment
g. Sales commissions
h. Wages of sewing machine operators
i. Repairs and maintenance costs for sewing machines
j. Salary of production quality control supervisor
k. Factory supervisor's salaries
l. Oil used to lubricate sewing machines
m. Travel costs of salespersons
n. Corporate controller's salary
o. Utility costs for office building
p. Research and development costs
q. Salaries of distribution center personnel

3. The following information is available for the first month of operations of Korv Inc. a manufacturer of art and craft items:

Sales $775,000
Gross profit 265,000
Indirect labor $ 63,000
Indirect materials 32,000
Other factory overhead 17,500
Material purchased 303,000
Total Manufacturing costs for the period 620,000
Material inventory, end of period 35,000

Using the above information, determine the following missing amounts:
a. Cost of goods sold
b. Direct materials cost
c. Direct labor cost

4. The Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:

Engine parts $650,750
Shop direct labor 520,625
Shop and repair equip. depreciation 12,800
Shop supervisor salaries 93,125
Shop property tax 22,300
Shop supplies 12,650
Advertising expense 18,100
Administrative office salaries 61,600
Administrative office dep. Expense 8,050

Total costs and expense 1,400,000

The average shop direct labor rate is $17 per hr.
Determine the predetermined shop overhead rate per direct labor hr.

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The solution explains the classification of given costs

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1. Indicate whether the following costs of Colgate-Palmolive company would be classified as directed materials costs, direct labor costs, or factory overhead cost:

Direct materials are materials which make up substantial portion of the product and can directly be traced to the product. Labor which works directly on products is direct labor. All other costs are overhead

a). Packaging materials - direct material
b. Depreciation on production machinery - overhead
c. Salary of process engineers - overhead
d. Depreciation on the Clarksville, Indiana, soap plant - overhead
e. Scent and fragrances - direct material
f. Wages of manufacturing employees - direct labor
g. Resins for soap and shampoo products - direct material
h. Plants managers salary for the Morristown, Tennessee, toothpaste plant - overhead
i. Maintenance supplies - overhead
j, wages paid to Packing department employees - direct labor

2, For apparel manufacturer Ann Taylor, Inc. classify each of the following costs as either a product cost or a period cost;

Product cost is the cost incurred in the factory. All other costs are period

a. Factory ...

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