Accounting
Chapter 2
Cost Terms, Concepts, and Classifications
Exercise 2-2 (15 minutes)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10 . 11 . 12 . 13 . 14 . 15 .
Depreciation on salespersons’ cars ................ Rent on equipment used in the factory .......... Lubricants used for machine maintenance ..... Salaries of personnel who work in the finished goods warehouse.............................. Soap and paper towels used by factory workers at the end of a shift ...................... Factory supervisors’ salaries.......................... Heat, water, and power consumed in the factory ...................................................... Materials used for boxing products for shipment overseas (units are not normally boxed) ...................................................... Advertising costs .......................................... Workers’ compensation insurance for factory employees ................................................ Depreciation on chairs and tables in the factory lunchroom .......................................... The wages of the receptionist in the administrative offices .......................................... Cost of leasing the corporate jet used by the company's executives ................................ The cost of renting rooms at a British Columbia resort for the annual sales conference ......................................................... The cost of packaging the company’s product............................................................
Product (Inventoriable) Cost
X X X X X
Period Cost
X X
X X
X X
X X X X
© McGraw-Hill Ryerson Ltd. 2012. All rights reserved. Solutions Manual, Chapter 2 1
Exercise 2-3 (15 minutes) Mountain High Income Statement For the month ended xxx Sales ............................................................. Cost of goods sold: Beginning merchandise inventory ................. Add: Purchases ........................................... Goods available for sale
Cost Terms, Concepts, and Classifications
Exercise 2-2 (15 minutes)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10 . 11 . 12 . 13 . 14 . 15 .
Depreciation on salespersons’ cars ................ Rent on equipment used in the factory .......... Lubricants used for machine maintenance ..... Salaries of personnel who work in the finished goods warehouse.............................. Soap and paper towels used by factory workers at the end of a shift ...................... Factory supervisors’ salaries.......................... Heat, water, and power consumed in the factory ...................................................... Materials used for boxing products for shipment overseas (units are not normally boxed) ...................................................... Advertising costs .......................................... Workers’ compensation insurance for factory employees ................................................ Depreciation on chairs and tables in the factory lunchroom .......................................... The wages of the receptionist in the administrative offices .......................................... Cost of leasing the corporate jet used by the company's executives ................................ The cost of renting rooms at a British Columbia resort for the annual sales conference ......................................................... The cost of packaging the company’s product............................................................
Product (Inventoriable) Cost
X X X X X
Period Cost
X X
X X
X X
X X X X
© McGraw-Hill Ryerson Ltd. 2012. All rights reserved. Solutions Manual, Chapter 2 1
Exercise 2-3 (15 minutes) Mountain High Income Statement For the month ended xxx Sales ............................................................. Cost of goods sold: Beginning merchandise inventory ................. Add: Purchases ........................................... Goods available for sale