Introdoction to Managerial Accounting 99 E1S-15 Classifying costs Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cos gven below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor DL), or manufacturing overhead (MOH) and then determine if the product cos is a prime cost, conversion cost, or both. If the cost is a period cost, forther deterne if the cost is a selling expense or administrative cspense (Adrmin) Cst (aj Learning Objective 2 a guide. Product Cost Period MOH Prime Conversion Selling Admin DM DL a Metal used for rims b.Sales salaries Rent on factory d.Wages of assembly workers e Salary of production supervisor f. Depreciation on office equipment g.Salary of CEO h.Delivery expense Use the following data for Exercises E18-16, E18-17, and E18-18 Selected data for three companies are given below. All inventory balances and all amounts are in millions. ending amounts are Company Company B Company A $ 12 Administrative Expenses $ 4 Cash $ 6 Wages Expense Cash 25 32 Net Sales Revenue Equipment 48 75 Net Sales Revenue Finished Goods Inventory Accounts Receivable 10 Selling Expenses 65 Cost of Goods Sold Service Revenue 23 12 Merchandise Inventory 34 Selling Expenses Equipment Work-in-Process Inventory Cash 4 Equipment 55 12 Rent Expense 67 19 Accounts Receivable 25 Cost of Goods Sold Accounts Receivable 14 Cost of Goods Manufactured Administrative Expenses 23 7 Raw Materials Inventory 6 CHAPTER 18