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Indicate whether each item below is a product cost (inventoriable cost) or a period cost. If it's a product cost say whether it is DM
Indicate whether each item below is a product cost (inventoriable cost) or a period cost. If it's a product cost say whether it is DM (direct materials), DL (direct labor) or MO (manufacturing overhead, also called indirect manufacturing costs). If it is a period cost, indicate whether it is AE (administrative expense) or SE (selling expense). These costs are for a company that makes tires. Cost of the rubber that goes into the tire Depreciation cost of $10,000 per year for equipment used by the company's top management Depreciation cost of $15,000 per year for machines used in the factory where the tires are made Depreciation cost of $12,000 per year for cars used by the company's salespeople Cost of paying $15 per hour to the workers who make the tires. The more tires that are made, the more hours the workers work 1. a. b. c. d. e. f. Commissions paid to the salespeople that equal $10 for each tire the salesperson sells. g. The cost of oil to lubricate the machines in the factory h. Salary of the factory supervisor which is $9,000 per month. i. Salary of the president of the company which is $20,000 per month Money earned by the sales manager that equals $5 for each tire sold
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