a)Identify the type of cost for each of the following expenses. (5 marks). Types of cost:a. Prime costs

b. Period costs

c. Conversion cost

Types of expenses: 1. Sales commission

2. Administrative expenses

3. Factory insurance

4. Salary of painting supervisor

5. Engine spare part

[Answer here]

a)

Types of expenses

Types of cost

1. Sales commission

2. Administrative expenses

3. Factory insurance

4. Salary of painting supervisor

5. Engine spare part

b)During 2019, $500,000 of raw materials were purchased, direct labour costs amounted to $600,000, and manufacturing overhead incurred was $480,000. What was Dalen's Manufacturing Company's total manufacturing costs incurred in 2019. Marks will be deducted if no workings are shown. (5 marks)

Dalen Manufacturing Company's accounting records reflect the following inventories:

Dec. 31, 2019Dec. 31, 2018

Raw materials inventory$310,000$260,000

Work in process inventory300,000160,000

Finished goods inventory190,000150,000