1. P2.33

   Classifying costs; product versus period; components of product cost LO 2.8, 2.9

   Indicate, for each of the costs listed below, whether it is:

   1. (a)product cost
   2. (b)period cost
   3. (c)conversion cost
   4. (d)prime cost
   5. (e)direct material cost
   6. (f)direct labour cost
   7. (g)

      manufacturing overhead.

   More than one classification may apply to each item.

   Costs:

   1. cost incurred by a department store chain to transport goods purchased for resale to its stores

   2. cost of grapes purchased by a winery

   3. depreciation on pizza ovens in a pizza restaurant

   4. wages of aircraft mechanics employed by an airline

   5. wages of drill-press operators in a manufacturing plant

   6. cost of food in a frozen packaged dinner

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   7. salary of a plant manager in a computer production facility

   8. wages of security personnel in a department store

   9. cost of electricity and gas in a manufacturing facility

   10. depreciation of computers used in a sales department

   11. depreciation of computers used to control production equipment.