Question

Which of the following is a period cost for a manufacturing​ company? A. Wages of factory...

Which of the following is a period cost for a manufacturing​ company?

A. Wages of factory janitor

B. Raw materials

C. Insurance cost of production equipment

D. Office rent

I'm pretty sure the correct answer is C but there i'm finding different answers online. Need confirmation.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer- The following is a period cost for a manufacturing​ company = Office rent.

Explanation- Period costs are those costs which are not included in the product costs. Usually these costs are not part of the manufacturing process and therefore treated as expense for the period in which they arise.

Example of period costs includes office rent, interest, depreciation, sales commission and advertising expense etc.

Wages of factory janitor, raw materials and insurance cost of production equipment are product costs.

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
Paul Stanley specializes in manufacturing motorcycle helmets. During the current period, the following costs were incurred....
Paul Stanley specializes in manufacturing motorcycle helmets. During the current period, the following costs were incurred. For each cost, indicate whether the cost would be considered to be DM--direct material; DL--direct labor; OH--factory overhead; or PC-period cost. 1. Maintenance costs on factory building _______ 2. Factory manager's salary ________ 3. Advertising for helmets ________ 4. Sales commissions ________ 5. Depreciation on factory building ________ 6. Rent on factory equipment ________ 7. Insurance on factory building ________ 8. Plastic used to...
Problem 19-1A Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is...
Problem 19-1A Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,700 Insurance on factory building 2,120 Raw materials (plastics, polystyrene, etc.) 80,100 Utility costs for factory 980 Supplies for general office 410 Wages for...
Cost of Goods Manufactured 324,850 Sales       550,000 Lubricants for factory machines         2,790 Rent, factory...
Cost of Goods Manufactured 324,850 Sales       550,000 Lubricants for factory machines         2,790 Rent, factory building       34,580 Depreciation of office equipment         3,280 Direct Labor       75,000 Indirect materials         1,650 Sales Commissions       56,740 Factory utilities         5,400 Manufacturing overhead applied       67,000 Insurance, factory       12,000 Rent, office       18,900 Purchases of Raw Materials     183,000 Work in Process, beginning         8,250 Work in Process, ending       13,900 Raw materials, beginning       23,000 Raw materials, ending...
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted...
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,800 Insurance on factory building 2,400 Raw materials (plastics, polystyrene, etc.) 79,400 Utility costs for factory 1,000 Supplies for general office 400 Wages for assembly line...
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted...
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $12,100 Insurance on factory building 2,540 Raw materials (plastics, polystyrene, etc.) 80,300 Utility costs for factory 950 Supplies for general office 310 Wages for assembly line...
Sales       550,000 Lubricants for factory machines         2,790 Rent, factory building       34,580 Depreciation of...
Sales       550,000 Lubricants for factory machines         2,790 Rent, factory building       34,580 Depreciation of office equipment         3,280 Direct Labor       75,000 Indirect materials         1,650 Sales Commissions       56,740 Factory utilities         5,400 Manufacturing overhead applied       67,000 Insurance, factory       12,000 Rent, office       18,900 Purchases of Raw Materials     183,000 Work in Process, beginning         8,250 Work in Process, ending       13,900 Raw materials, beginning       23,000 Raw materials, ending       17,500 Prepare the Schedule...
1. Classify the following as direct materials, direct labor, factory overhead, or selling and administrative expense.  ...
1. Classify the following as direct materials, direct labor, factory overhead, or selling and administrative expense.   Potatoes Wages of factory janitor Wages of raw potato inspectors Insurance on factory machines Cleaning solvent for the factory floor Cooking oil Salt Rent paid for factory buildings Depreciation on corporate offices Electric power consumed in operating factory machines Wages of the production supervisor Wages of machine operators Potato chip bags Boxes Electricity used in lighting corporate offices
1. Classify the following as direct materials, direct labor, factory overhead, or selling and administrative expense.  ...
1. Classify the following as direct materials, direct labor, factory overhead, or selling and administrative expense.   Potatoes Wages of factory janitor Wages of raw potato inspectors Insurance on factory machines Cleaning solvent for the factory floor Cooking oil Salt Rent paid for factory buildings Depreciation on corporate offices Electric power consumed in operating factory machines Wages of the production supervisor Wages of machine operators Potato chip bags Boxes Electricity used in lighting corporate offices
Which of the following is not an example of a period cost for a manufacturing plant?...
Which of the following is not an example of a period cost for a manufacturing plant? a. Assembly line workers' wages b. Office rent c. Depreciation of office machinery d. Office lighting
Factory Overhead Cost Budget Sweet Tooth Company budgeted the following costs for anticipated production for August:...
Factory Overhead Cost Budget Sweet Tooth Company budgeted the following costs for anticipated production for August: Advertising expenses $259,400 Manufacturing supplies 14,220 Power and light 42,400 Sales commissions 290,020 Factory insurance 24,690 Production supervisor wages 124,710 Production control wages 32,420 Executive officer salaries 264,390 Materials management wages 35,670 Factory depreciation 20,210 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Sweet Tooth Company Factory Overhead Cost...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT