ACCT346 Managerial Accounting: Week 1 Assignment

ACCT346 Managerial Accounting 
Week 1 Assignment 
Answer the four questions below: 
1. Identify whether each of the items below is a Product Cost or Period Cost: 
Factory insurance 
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: 
Factory insurance 
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: 
Shipping costs for bread 
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: 
An airline manufacturer incurred the following costs last month (in thousands of dollars): 

a. Depreciation on forklifts 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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