Determine whether each of the following is classified as:

DM: Direct materials

DL: Direct labor

MO: Manufacturing overhead

_____ 1. Assembly line welders' wages.

_____ 2. Factory product inspectors' salaries.

_____ 3. Aluminum used in manufacturing a prefabricated panel.

_____ 4. Lubricant used in production.

_____ 5. Steel bumpers used in manufacturing vehicles.

_____ 6. Insurance on factory building.

_____ 7. Electricity used to run factory machinery.

_____ 8. Mechanics who repair factory machinery.

_____ 9. Teak wood used by a furniture company.

_____ 10. Depreciation on factory machinery

For each item, identify all applicable cost labels. Use the following code in your answer:

1 - Product Cost or 2 - Period Cost

a. Magazine Ad _________

b. Direct materials used _________

c. Indirect factory labor _________

d. Sales salaries _________

e. Repairs to office equipment _________

f. Television commercial _________

g. Direct labor _________

h. Wood used by furniture company ________

i. Repairs to factory drill press ________

j. Salary of the company president

Property taxes on a manufacturing plant are an element of a

Product Cost Period Cost

a. Yes No

b. Yes Yes

c. No Yes

d. No No