Question
Classify the following costs as either product (inventoriable)costs or period (noninventoriable) costs in a manufacturingcompany: 1.Depreciation on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for maintenance of machines 4. Salaries of finished goods warehouse personnel 5. Soap and paper towels used by factory workers 6. Factory supervisors' salaries 7. Heat, water, and power consumed in the factory 8. Materials used for boxing products for shipment overseas(units are not normallly boxed) 9. Advertising costs 10. Worker's compensation insurance on factory employees 11. Depreciation on chairs and tables in the factorylunchroom 12. The wages of the receptionist in the administrativeoffices 13.Lease cost of the corporate jet used by the company'sexecutives 14. Rent on rooms at a Florida resort for the annual salesconference 15. Attractively designed box for packaging the company'sproduct- breakfast cereal Classify the following costs as either product (inventoriable)costs or period (noninventoriable) costs in a manufacturingcompany: 1.Depreciation on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for maintenance of machines 4. Salaries of finished goods warehouse personnel 5. Soap and paper towels used by factory workers 6. Factory supervisors' salaries 7. Heat, water, and power consumed in the factory 8. Materials used for boxing products for shipment overseas(units are not normallly boxed) 9. Advertising costs 10. Worker's compensation insurance on factory employees 11. Depreciation on chairs and tables in the factorylunchroom 12. The wages of the receptionist in the administrativeoffices 13.Lease cost of the corporate jet used by the company'sexecutives 14. Rent on rooms at a Florida resort for the annual salesconference 15. Attractively designed box for packaging the company'sproduct- breakfast cereal
Explanation / Answer
1.Depreciation on salesperson's cars Noninventoriable Noninventoriable 2. Rent on equipment used in the factory Inventoriable Inventoriable 3. Lubricants used for maintenance ofmachines Noninventoriable Noninventoriable 4. Salaries of finished goods warehousepersonnel Noninventoriable Noninventoriable 5. Soap and paper towels used by factoryworkers Inventoriable Inventoriable 6. Factory supervisors' salaries Noninventoriable Noninventoriable 7. Heat, water, and power consumed in thefactory Noninventoriable Noninventoriable 8. Materials used for boxing products forshipment overseas (units are not normallly boxed) Inventoriable Inventoriable 9. Advertising costs Noninventoriable Noninventoriable 10. Worker's compensation insurance on factoryemployees Noninventoriable Noninventoriable 11. Depreciation on chairs and tables in thefactory lunchroom Noninventoriable Noninventoriable 12. The wages of the receptionist in theadministrative offices Noninventoriable Noninventoriable 13.Lease cost of the corporate jet used by thecompany's executives Noninventoriable Noninventoriable 14. Rent on rooms at a Florida resort for theannual sales conference Inventoriable Inventoriable 15. Attractively designed box for packaging thecompany's product- breakfast cereal Inventoriable