Classify a manufacturer’s costs (Learning Objective 4)

Classify each of the following costs as a period cost or an inventoriable product cost. If you classify the cost as an inventoriable product cost, further classify it as direct material (DM), direct labor (DL), or manufacturing overhead (MOH).

a. Depreciation on automated production equipment

b. Telephone bills relating to customer service call center C. Wages and benefits paid to assembly-line workers in the manufacturing plant

d. Repairs and maintenance on factory equipment

e. Lease payment on administrative headquarters

f. Salaries paid to quality control inspectors in the plant g. Property insurance 40% of building is used for sales and administration; 60% of building is used for manufacturing h. Standard packaging materials used to package individual units of product for sale (for example, cereal boxes in which cereal is packaged)