1 1/21/18 chp19 (2) if manufacturing consists of activities and processes that convert raw materials into finished goods, what are the different cost classified? 2. 3. Problem 2 A bicycle company has these costs: tires, salaries of employees who put tires on the wheels, factory building depreciation, advertising expenditures, factory machine lubricants, spokes, salary of factory manager, salary of accountant, handlebars, and salaries of factory maintenance employees. Classify each cost as direct materials, direct labor, overhead, or period cost. Please explain how the Income Statement of a Merchandiser and a Manufacturer differ in the cost of goods sold section? 1 1/21/18 chp19 (2) if manufacturing consists of activities and processes that convert raw materials into finished goods, what are the different cost classified? 2. 3. Problem 2 A bicycle company has these costs: tires, salaries of employees who put tires on the wheels, factory building depreciation, advertising expenditures, factory machine lubricants, spokes, salary of factory manager, salary of accountant, handlebars, and salaries of factory maintenance employees. Classify each cost as direct materials, direct labor, overhead, or period cost. Please explain how the Income Statement of a Merchandiser and a Manufacturer differ in the cost of goods sold