Acct 346 Assignment Week 1

ACCT 346 Assignment Week 1

http://www.homeworkarena.com/acct346-wk-1-assignment-

Directions: For this assignment, assume that we’re analyzing a large factory operation that produces and markets fine baked goods to many supermarket chains. Your

assignment this week is to insert all of the answers in the empty cells below, and note that a few items have already been filled in just to get you started on each section.

1. Identify whether each of the items below is a Product Cost or Period Cost: (1/2 point each, total 5 points)

Factory insurance

Company president’s salary

Eggs, salt, water used for baking

Depreciation expense on bake ovens

Paper wrappers for bread

Factory lease

Advertising costs

Factory supervisor salaries

Sales commissions

Flour used in baking bread

Product

2. Identify whether each of the items below is a Direct Cost or Indirect Cost: (1/2 point each, total 5 points)

Factory insurance

Baker’s wages

Eggs used for baking

Depreciation expense on bake ovens

Paper wrappers for bread

Cleaning materials for bake ovens

Utilities used in factory

Factory supervisor salaries

Lubricant for factory equipment

Flour used in baking bread

Indirect

3. Identify whether each of the items below is a Fixed Cost or Variable Cost: (1/2 point each, total 5 points)

Shipping costs for bread

Cost of fuel for delivery truck fleet

Factory rent

Factory insurance

Maintenance on delivery trucks

Sales commissions

Wages paid to part-time (hourly) baker’s assistant

Oven depreciation

Cost of fruit for cake topping

Factory utilities

Question 4 General Instructions: For this baking operation, you’ll

need to first classify each expense below as direct material, direct

labor, indirect material, indirect labor, other manufacturing overhead

or period cost, and then answer the calculation questions in Parts 4b

– 4e.

Variable

4a. Amounts given below are in thousands of dollars. For this

section you will need to classify each cost. HINT: Simply...