P1. Lair Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Lairs monthly manufacturing cost and other expense data are as follows:

Maintenance costs on factory building $ 300

Factory managers salary 4,000

Advertising for helmets 10,000

Sales commissions 3,000

Depreciation on factory building 700

Rent on factory equipment 6,000

Insurance on factory building 3,000

Raw materials (plastic, polystyrene, etc.) 20,000

Utility costs for factory 800

Supplies for general office 200

Wages for assembly line workers 44,000

Depreciation on office equipment 500

Miscellaneous materials (glue, thread, etc.) 2,000

Answer:

Cost Item	Direct Material	Direct Labor	Manufacturing Overhead	Period Cost
Maintenance costs on factory building
Factory managers salary
Advertising for helmets
Sales commissions
Depreciation on factory building
Rent on factory equipment
Insurance on factory building
Raw materials (plastic, polystyrene, etc.)
Utility costs for factory
Supplies for general office
Wages for assembly line workers
Depreciation on office equipment
Miscellaneous materials (glue, thread, etc.)
Total