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Sun Co.'s 2014 manufacturing costs were as follows: Direct materials $500,000 Direct labor 600,000 Depreciation of manufacturing equipment 80,000 Depreciation of factory building 50,000 Janitor's
Sun Co.'s 2014 manufacturing costs were as follows:
Direct materials | $500,000 |
Direct labor | 600,000 |
Depreciation of manufacturing equipment | 80,000 |
Depreciation of factory building | 50,000 |
Janitor's wages for cleaning factory premises | 25,000 |
Depreciation on Sales Person's Car | 5,000 |
Salary of the CEO | 500,000 |
How much of these costs should be treated as a product cost and inventoried (as opposed to being expensed as a period cost)?
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