Question

Given below is a list of costs associated with making a pair of Nike shoes. Some...

Given below is a list of costs associated with making a pair of Nike shoes. Some of these costs would be classified as product costs and some as period costs. Use the schedule below to indicate which costs would be product and which would be period. Production Materials $ 9.00/ Factory rent 1.00/ Factory machine maintenance 0.60/ Administrative costs 0.75 /Factory utilities 0.40/ Production labor 2.75/ Duties on shipments out 3.00 /Factory maintenance workers 0.70 /Shipping costs for materials 0.50/ Labor supervision 0.30 Total $19.00

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

Product costs: Product cost refers to those costs which are incurred to make a product suc as material, labor, and factory overheads.

Production Materials $ 9.00

Factory rent 1.00

Factory machine maintenance 0.60

Factory utilities 0.40

Production labor 2.75

Factory maintenance workers 0.70

Shipping costs for materials 0.50

Labor supervision 0.30

Total product costs: $ 15.25

Period costs: Period cost refers to the cost which are associated with passage of time such as administrative overheads, and selling & distribution overheads.

Administrative costs 0.75

Duties on shipments out 3.00

Total period costs: $ 3.75

In case of any doubt or clarification, feel free to come back via comments.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Identify whether each of the below costs are direct materials, direct labor, manufacturing overhead, or period...
Identify whether each of the below costs are direct materials, direct labor, manufacturing overhead, or period costs. a) Advertising to sell the product b) Shipping costs for raw materials coming from a supplier c) Shipping costs for goods shipped to a customer d) Chief executive officer’s salary e) Production supervisor’s salary f) Depreciation on production equipment g) Raw materials used in production h) Paper used by the accounting staff i) Maintenance of production equipment j) Commissions paid to salespeople k)...
The following is a list of costs incurred by several different businesses. a) The cost of...
The following is a list of costs incurred by several different businesses. a) The cost of cotton used in the production of shirts. b) Maintenance costs for factory equipment. c) The annual salary for the three factory managers. d) Depreciation on marketing equipment. e) Cost of Wages for the laborers hired to bottle beer in the brewery plant. f) Telephone charges of the CEO’s office. g) Depreciation of tools used in production. h) Rent on the head office building. i)...
Select a product that you use and list some of the manufacturing costs (direct materials, direct...
Select a product that you use and list some of the manufacturing costs (direct materials, direct labor, variable factory overhead, and fixed factory overhead). Indicate which would be included in the cost of goods sold under variable and absorption costing.
Please select a product that you use and list some of the manufacturing costs (direct materials,...
Please select a product that you use and list some of the manufacturing costs (direct materials, direct labor, variable factory overhead, and fixed factory overhead). Indicate which would be included in the cost of goods sold under variable and absorption costing.
[The following information applies to the questions displayed below.] Listed here are the total costs associated...
[The following information applies to the questions displayed below.] Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $549 each.    Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$91,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$40,000 5. Drum stands (1,000 stands purchased)—$34,000 6. Rent cost of equipment for sales staff—$36,000 7. Upper management salaries—$220,000 8. Annual flat fee for factory maintenance service—$21,000...
[The following information applies to the questions displayed below.] Listed here are the total costs associated...
[The following information applies to the questions displayed below.] Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $459 each. Costs 1. Plastic for casing—$20,000 2. Wages of assembly workers—$90,000 3. Property taxes on factory—$5,000 4. Accounting staff salaries—$35,000 5. Drum stands (1,000 stands purchased)—$38,000 6. Rent cost of equipment for sales staff—$24,000 7. Upper management salaries—$120,000 8. Annual flat fee for factory maintenance service—$18,000 9....
Even Pressure, Inc., is a Wisconsin-based manufacturer of industrial valves and pipe fittings that are sold...
Even Pressure, Inc., is a Wisconsin-based manufacturer of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is operating at about 70% capacity and is earning a satisfactory return on investment. Management does not believe it can economically capture more domestic market share, and has been seeking the best opportunity for international expansion. Even Pressure’s management has been approached by Glass Cow Industries Ltd. of Scotland with an offer to buy 60,000 units...
On the basis of the following data, the general manager of Featherweight Shoes Inc. decided to...
On the basis of the following data, the general manager of Featherweight Shoes Inc. decided to discontinue Children’s Shoes because it reduced income from operations by $17,000. Featherweight Shoes Inc. Product-Line Income Statement For the Year Ended April 30, 20Y8 1 Children’s Shoes Men’s Shoes Women’s Shoes Total 2 Sales $235,000.00 $300,000.00 $500,000.00 $1,035,000.00 3 Costs of goods sold: 4 Variable costs $130,000.00 $150,000.00 $220,000.00 $500,000.00 5 Fixed costs 41,000.00 60,000.00 120,000.00 221,000.00 6 Total cost of goods sold $171,000.00...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons for the failure and how did the breakdown harm Nike? 2. What are the important elements to be kept in mind while implementing a new system in an organization? What is the importance of a good working relationship between partners and the sharing of responsibility in implementing critical projects? What mistakes did Nike and i2 make? 3. comment on the lessons learned and the...
Futura Company purchases the 74,000 starters that it installs in its standard line of farm tractors...
Futura Company purchases the 74,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.70 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $12.30 as shown below: Per Unit Total Direct...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT