Question
Eddie is the owner of a firm manufacturing calculator. The table below provides you partial data from the firm's financial records for the most recent
Eddie is the owner of a firm manufacturing calculator. The table below provides you partial data from the firm's financial records for the most recent month.
Cost item # | Description | Amount (000's of dollars) |
1 | Sales Commissions | 100.56 |
2 | Distribution costs | 56.89 |
3 | Factory rent | 15.68 |
4 | Product components | 389.68 |
5 | Direct manufacturing labor | 478.89 |
6 | Sales manager's salary | 50.25 |
7 | Production supervisor's salary | 40.58 |
8 | Supplies used in manufacturing | 122.41 |
9 | Plant manager's salary | 78.89 |
10 | Supplies used in sales offices | 236.54 |
Which of the following statements is true?
Product costs | Period costs | |
A | Cost items # 3, 4, 5, 7, 9, 10 | Cost items # 1, 2, 6, 8 |
B | Cost items # 3, 4, 5, 9, 10 | Cost items # 1, 2, 6, 7, 10 |
C | Cost items # 1, 2, 6, 7, 10 | Cost items # 3, 4, 5, 9, 10 |
D | Cost items # 1, 2, 6, 8 | Cost items # 3, 4, 5, 7, 9, 10 |
E | Cost items # 3, 4, 5, 7, 8, 9 | Cost items # 1, 2, 6, 10 |
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