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Swift Company Paper

No Cloth used to make drapes. 4. Production superintendent’s salary. 5. Wages of laborers assembling a product. 6. Depreciation of air purification equipment used to make furniture. Janitorial salaries. 8. Peaches used in canning fruit. 9. Lubricants for production equipment. 10. Sugar used in soft-drink production. I I Property taxes on the factory. 12. Wages of workers painting a product. 13. Depreciation on cafeteria equipment. 14. Insurance on a building used in producing helicopters. 15, Cost of rotor blades used in producing helicopters.

Worksheet Learning Objective: 01-06 Understand the differences between variable costs and fixed costs. Difficulty: Easy Learning Objective: 01-07 understand the differences between direct and indirect costs. Http://est.. McLeod. McGraw-hill. Com/hem_accounting. tap Page 2 of 6 Swift Company was organized on March 1 of the current year. After five months Of Start-up losses, management had expected to earn a profit during August. Management was disappointed, however, when the income statement for August also showed a loss.

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