Below is a partial list of cost associated with Company X

Required:

Categorize each Cost as either: Direct material, Direct labor, Manufacturing overhead, or period cost.

Prepare a schedule for each cost category.

Cost:

11. Depreciation on the autos used by sales personnel 10,000

12. Sales personnel salaries 150,000

13. Property tax on the land on which the all the facilities are located; allocated 75% production, 25% administration 8,000

14. Chief financial officer salary 75,000

15. Human resource manager for production employees 45,000

16. Clerical personnel in the sales department 25,000

17. Health insurance for the administrative personnel 15,000

18. Salary for the accountant in the production facility. 40,000

19. Cost of cleaning the administrative and sales offices 15,000

20. Professional cost of preparing the tax return for Company X 10,000