Question
Classify the following costs incurred in the manufacturing of cookie bars as either (a) Product Cost- Direct Materials , (b) Product Cost- Conversion , or
Classify the following costs incurred in the manufacturing of cookie bars as either (a) Product Cost- Direct Materials, (b) Product Cost- Conversion, or (c) Period Cost (5 points).
| Cost Incurred in Manufacturing of Cookies | Classification | |
| a. | Depreciation on Automated Wrapping Machine | |
| b. | Cookie Dough | |
| c. | Peanut Butter | |
| d. | Plant Managers Salary of $90,000 | |
| e. | Overtime Pay of Production Workers | |
| f. | Cost of Air Time for New Radio Advertising | |
| g. | Salary of Plant Security Guard | |
| h. | Salary of Company Controller | |
| i. | Depreciation on Computers in Legal Staff Office | |
| j. | Manufacturing Departments Allocation of Cafeteria Costs |
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