Buy Principles Of Accounting Discussion

Buy Principles Of Accounting Discussion
Exercise A – Chapter 4 Job Order Costing
LO 4.1Little Things manufactures toys. For each item listed, identify whether it is a product
cost, a period cost, or not an expense.
A. internet provider services
B. material expense
C. raw materials inventory
D. production equipment rental
E. showroom rental
F. factory employee salary
G. Human Resource Director salary
LO 4.2Table 4.3 shows a list of expenses involved in the production of custom, professional
lacrosse sticks.
A. For each item listed, state whether the cost should be applied to manufacturing or sales
and administration.
B. If the cost is a manufacturing cost, state whether it is direct materials, direct labor, or
manufacturing overhead.
C. If the cost is a manufacturing overhead cost, state whether it is indirect materials, indirect
labor, or another type of manufacturing overhead.
Expenses Involved in Lacrosse Stick Production
Lacrosse Stick
Production Costs
Manufacturing or Sales

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