Requirement 1. For a manufacturing company, identify the following as either a product cost or a period cost:

	a.	Depreciation on plant equipment
	b.	Depreciation on salespersons' automobiles
	c.	Insurance on plant building
	d.	Marketing manager's salary

Part 2

	e.	Direct materials used
	f.	Manufacturing overhead
	g.	Electricity bill for human resources office
	h.	Production employee wages

Part 3

Requirement 2. Show how to compute cost of goods manufactured. Use the following amounts: direct materials used,

$28,000;

direct labor,

$11,000;

manufacturing overhead,

$12,000;

beginning Work-in-Process Inventory,

$10,000;

and ending Work-in-Process Inventory,

$1,000.

Cost of Goods Manufactured
Total Manufacturing Costs Incurred during Period
Total Manufacturing Costs to Account For
Cost of Goods Manufactured

Part 4

Requirement 3. Using the results from Requirement 2, calculate the cost per unit for goods manufactured assuming

1,200

units were manufactured.

			=	Unit product cost
			=

Part 5

Requirement 4. Beginning Finished Goods Inventory had

175

units that had a unit cost of

$45

each. Ending Finished Goods Inventory has

200

units left. Using the results from Requirement 3, calculate cost of goods sold assuming FIFO inventory costing is used.

+
=
-
=	Cost of Goods Sold