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General Motors has a manufacturing plant in Detroit Michigan. At this plant they have an assembly line, which makes the cars to be shipped to
General Motors has a manufacturing plant in Detroit Michigan. At this plant they have an assembly line, which makes the cars to be shipped to the dealership. In addition, General Motors has a bunch of sales dealerships all over the United States. They are trying to figure out which of these expenses should be included as product cost as part of their inventory and which should be expensed as a period cost in the current period. The following expenses in question are as follows: Product Period Depreciation on Sales Person's Car Insurance on Sales Dealership Insurance on Plant in which the Caris Assembled Salary of Sales Person on Sales Lot Salary of Assembly Line Manager Salary of Clerk that works at Sales Dealership Lease Expense at Manufacturing Plant Depreciation on Soinch TV used on the Manufacturing Plant Floor Cost of Packaging Plastic on Car Seats from the Manufacturing Plant Steel Used in Production Advertising Cost Travel Expense of shop floorworker to fix a assembly line part
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