William P. Worth
ACCC 560 EXERCISES & PROBLEMS
Chapter One
January 13, 2012

EX 1-5Ikerd Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead and (d) period costs. | | 1. | Property taxes on the factory building. D | 2. | Production superintendents' salaries. B | 3. | Memory boards and chips used in assembling computers. A | 4. | Depreciation on the factory equipment. D | 5. | Salaries for assembly-line quality control inspectors. B | 6. | Sales commissions paid to sell personal computers. C | 7. | Electrical components used in assembling computers. A | 8. | Wages of workers assembling personal computers. B | 9. | Soldering materials used on factory assembly lines. A | 10. | Salaries for the night security guards for the factory building. C | | |
List the items (1) thru (10) for each item, indicate the cost category to which the items belong.
Rapid Delivery Service reports the following costs ands expenses in June 2011

Indirect materials$5400 Product cost
Drivers' salaries $11,000 Product cost
Depreciation on delivery equip $11,200 Product cost
Advertising$1,600 Period cost

Dispatcher's salary $5000 Product cost
Delivery equip repair$300 Product cost

Property taxes on office building$800 Period cost
Office supplies$600 Period cost
CEO's salary$12,000 Period cost
Office utilities$900 Period cost
Gas & Oil for delivery truck$2,200 Product cost

Repairs on office equip$180 Period cost

Determine the total amount of (a) delivery service (product) costs $35100 and (b) period costs $16080

Pena Corporation incurred the following