Managerial Accounting Chapter 2 Solutions
Exercise 2-2
| | |Product |Period Cost |
| | |(Inventoriable) Cost | |
|1. |Depreciation on salespersons’ cars | |X |
|2. |Rent on equipment used in the factory |X | |
|3. |Lubricants used for machine maintenance |X | |
|4. |Salaries of personnel who work in the finished goods warehouse | |X |
|5. |Soap and paper towels used by factory workers at the end of a shift |X | |
|6. |Factory supervisors’ salaries |X | |
|7. |Heat, water, and power consumed in the factory |X | |
|8. |Materials used for boxing products for shipment overseas (units are not normally boxed) | |X |
|9. |Advertising costs | |X |
|10. |Workers’ compensation insurance for factory employees |X | |
|11. |Depreciation on chairs and tables in the factory lunchroom
| | |Product |Period Cost |
| | |(Inventoriable) Cost | |
|1. |Depreciation on salespersons’ cars | |X |
|2. |Rent on equipment used in the factory |X | |
|3. |Lubricants used for machine maintenance |X | |
|4. |Salaries of personnel who work in the finished goods warehouse | |X |
|5. |Soap and paper towels used by factory workers at the end of a shift |X | |
|6. |Factory supervisors’ salaries |X | |
|7. |Heat, water, and power consumed in the factory |X | |
|8. |Materials used for boxing products for shipment overseas (units are not normally boxed) | |X |
|9. |Advertising costs | |X |
|10. |Workers’ compensation insurance for factory employees |X | |
|11. |Depreciation on chairs and tables in the factory lunchroom