| DeVry University |
| ACCT346 Weekly Assignment |
| Week 1 |
| Directions: Your assignment this week is to answer the four questions below. Please note that Question 4 contains multiple parts. Please show your work for full credit on Questions 4b - 4e. |
| 1. Identify whether each of the items below is a Product Cost or Period Cost: (1/2 point each, total 5 points) |
| Factory insurance | Product |
| Interest on bank loan |
| Eggs, salt, water used for baking |
| Depreciation on bake ovens |
| Paper wrappers for bread |
| Delivery truck costs |
| Advertising costs |
| Factory supervisor salaries |
| Sales Commissions |
| Flour used in baking bread |
| 2. Identify whether each of the items below is a Direct Cost or Indirect Cost: (1/2 point each, total 5 points) |
| Factory insurance | Indirect |
| Baker's wages |
| Eggs used for baking |
| Depreciation on bake ovens |
| Paper wrappers for bread |
| Cleaning materials for bake ovens |
| Utilities used in factory |
| Factory supervisor salaries |
| Small amount of salt used |
| Flour used in baking bread |
| 3. Identify whether each of the below is a Fixed Cost or Variable Cost: (1/2 point each, total 5 points) |
| Shipping costs for bread | Variable |
| Cost of fuel for delivery truck |
| Factory rent |
| Factory insurance |
| Maintenance on delivery truck |
| Sales commissions |
| Hourly wages paid to baker's assistant |
| Oven depreciation |
| Cost of fruit for cake topping |
| Factory utilities |
| 4. Classify each as direct material, direct labor, indirect labor, indirect labor, other manufacturing overhead or period cost, and then answer the 5 questions below: | | 4a. Classify each cost (the first one is done for you): (5 points total) |
| An airline manufacturer incurred the following costs last month (in thousands of dollars): | | Direct Material | Direct Labor | Indirect Material | Indirect Labor | Other Manufacturing Overhead | Period Cost |
| a. Depreciation on forklifts ........................................................................... | $60 | | | | | $60 |
| b. Property tax on corporate marketing office ............................................. | $30 |
| c. Cost of warranty repairs ............................................................................ | $220 |
| d. Factory janitors’ wages ............................................................................. | $10 |
| e. Cost of designing new plant layout .......................................................... | $190 |
| f. Machine operators’ health insurance ....................................................... | $40 |
| g. Airplane seats ........................................................................................... | $270 |
| h. Depreciation on administrative offices ..................................................... | $70 |
| i. Assembly workers’ wages ......................................................................... | $670 |
| j. Plant utilities ............................................................................................. | $110 |
| k. Production supervisors’ salaries ................................................................ | $160 |
| l. Jet engines ................................................................................................ | $1,100 |
| m. Machine lubricants .................................................................................... | $20 |
| Then, answer the below questions: |
| 4b. How much are total manufacturing overhead costs? (5 points) |
| 4c. How much are total inventoriable product costs? (5 points) |
| 4d. How much are total prime costs? (5 points) |
| 4e. How much are total conversion costs? (5 points) |
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acct346_week_1_assignment.xlsx
