Liquidshampoo Inc. is a company that produces liquid shampoo. Hourly employees on the assembly line in...

 

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Liquidshampoo Inc. is a company that produces liquid shampoo. Hourly employees on the assembly line in the manufacture use machinery to pour the liquid shampoo into the bottles. Hourly employees on the assembly line then put a sticker on the bottle and place the bottles in boxes. Salaried supervisors in manufacture oversee the process. The company hires Fed-Mex to ship the boxes filled with bottles of liquid shampoo to local retailers such as Cool-Mart. Liquidshampoo Inc. has a beautiful head office filled with salaried employees, such as accountants and lawyers, They outsource the marketing process to an external design company. Categorize the following costs as either period or product costs. Explain whether they are prime costs or conversion costs. 1. Empty plastic bottles 2. Machinery rental in the manufacture 3. Salaried employees in the head office 4. Salaried supervisors in the manufacture 5. Salary of Accountants 6. Rent manufacturing 7. Electricity costs for the manufacture 8. Rent for the head office 9. Marketing costs 10. Liquid shampoo 11. Salary of Lawyers 12. Electricity-head office Liquidshampoo Inc. is a company that produces liquid shampoo. Hourly employees on the assembly line in the manufacture use machinery to pour the liquid shampoo into the bottles. Hourly employees on the assembly line then put a sticker on the bottle and place the bottles in boxes. Salaried supervisors in manufacture oversee the process. The company hires Fed-Mex to ship the boxes filled with bottles of liquid shampoo to local retailers such as Cool-Mart. Liquidshampoo Inc. has a beautiful head office filled with salaried employees, such as accountants and lawyers, They outsource the marketing process to an external design company. Categorize the following costs as either period or product costs. Explain whether they are prime costs or conversion costs. 1. Empty plastic bottles 2. Machinery rental in the manufacture 3. Salaried employees in the head office 4. Salaried supervisors in the manufacture 5. Salary of Accountants 6. Rent manufacturing 7. Electricity costs for the manufacture 8. Rent for the head office 9. Marketing costs 10. Liquid shampoo 11. Salary of Lawyers 12. Electricity-head office