Managerial Accounting Chapter 2 Solutions

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Exercise 2-2

| | |Product |Period Cost | | | |(Inventoriable) Cost | | |1. |Depreciation on salespersons’ cars | |X | |2. |Rent on equipment used in the factory |X | | |3. |Lubricants used for machine maintenance |X | | |4. |Salaries of personnel who work in the finished goods warehouse | |X | |5. |Soap and paper towels used by factory workers at the end of a shift |X | | |6. |Factory supervisors’ salaries |X | | |7. |Heat, water, and power consumed in the factory |X | | |8. |Materials used for boxing products for shipment overseas (units are not normally boxed) | |X | |9. |Advertising costs | |X | |10. |Workers’ compensation insurance for factory employees |X | | |11. |Depreciation on chairs and tables in the factory lunchroom |X | | |12. |The wages of the receptionist in the administrative offices | |X | |13. |Cost of leasing the corporate jet used by the company's executives | |X | |14. |The cost of renting rooms at a British Columbia resort for the annual sales conference | |X | |15. |The cost of packaging the company’s product |X | |

Exercise 2-7

| | |Differential |Opportunity |Sunk | | |Item |Cost |Cost |Cost | |1. |Cost of the new flat-panel displays |X | | | |2. |Cost of the old computer terminals | | |X | |3. |Rent on the space occupied by the registration desk | | | | |4. |Wages of registration desk personnel | | | | |5. |Benefits from a new freezer | |X | | |6. |Costs of maintaining the old computer terminals |X | | | |7. |Cost of removing the old computer terminals |X |...
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