Question : 164. Put the following in the order of the flow of : 1246742

 

164. Put the following in the order of the flow of manufacturing costs for a companya. Closing under/over applied factory overhead to cost of goods soldb. Materials purchasedc. Factory labor used and factory overhead incurred in productiond. Completed jobs moved to finished goodse. Factory overhead applied to jobs according to the predetermined overhead ratef. Materials requisitioned to jobsg. Selling of finished producth. Preparation of financial statements to determine gross profit 

165. The following is a list of costs incurred by several business organizations: 

(a)

Telephone cable for a telephone company.

(b)

Subscription to a health club for executives.

(c)

Salary of the Director of Internal Auditing.

(d)

Long-distance telephone bill for calls made by salespersons.

(e)

Carrying cases for a manufacturer of video camcorders.

(f)

Cotton for a textile manufacturer of blue jeans.

(g)

Bandages for the emergency room of a hospital.

(h)

Cost of company holiday party.

(i)

Electricity used to operate factory machinery.

(j)

State unemployment compensation taxes for factory workers.

(k)

Gloves for factory machine operators.

(l)

Fees paid lawn service for office grounds.

(m)

Salary of secretary to vice-president of finance.

(n)

Salary of secretary to vice-president of marketing.

(o)

Production supervisor’s salary.

(p)

Engine oil for manufacturer and distributor of motorcycles.

(q)

Oil lubricants for factory plant and equipment.

(r)

Cost of a radio commercial.

(s)

Depreciation on factory equipment.

(t)

Wages of check-out clerk in company-owned retail outlet.

(u)

Maintenance and repair costs for factory equipment.

(v)

Depreciation on office equipment.

(w)

Bonuses paid to salespersons.

(x)

Insurance on factory building.

(y)

Training for accounting personnel on use of microcomputer.

(z)

Steel for a construction contractor.

 

 

Classify each of the preceding costs as product costs or period costs. For those costs classified as product costs, indicate whether the product cost is a direct materials cost, direct labor cost, or factory overhead cost. For those costs classified as period costs, indicate whether the period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer. Place an X in the appropriate column. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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