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Listed below are costs found in various organizations

Accounting Oct 05, 2020

Listed below are costs found in various organizations. 1. Property taxes of the factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons' commissions. 4. Supervisor's salary, factory. 5. Depreciation of executive cars. 6. Wages of workers assembling computers. 7. Insurance for the finished goods warehouses. 8. Lubricants for production equipment. 9. Advertising costs. 10. Microchips used in producing calculators. Required: Prepare an answer sheet with column headings as shown below. For each cost item, indicate whether it would be be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct cost or an indirect cost with respect to units of product No Administrative Selling Cost Item Manufacturing Cost Cost Cost Direct Cost Indirect Cost Example: X Direct labor

Expert Solution

No Cost item Selling cost Administrative cost Manufacturing cost
        Direct cost Indirect cost
1 property taxes of the factory       X
2 Boxes used for packaging detergent produced by the company x      
3 sales persons commissions x      
4 supervisors salary factory       x
5 depreciation of executive cars   x    
6 wages of workers assembling computers     x  
7 insurance for the finished goods warehouses x      
8 lubricants for production equipment       x
9 advertising cost x      
10 micro chips used in producing calculators     x  
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