1. The following costs are incurred by an electrical appliance manufacturer. Classify these costs as direct materials, direct labor, and manufacturing overhead, selling, or administrative costs. Use a table form provide. Eg

Cost

Classification

Cost of spare parts

Direct material

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1. President's salary. ( mark)
2. Cost of electrical wire used in making appliances. ( mark)
3. Cost of janitorial supplies (the janitors work in the factory. ( mark)
4. Wages of assembly-line workers. ( mark)
5. Cost of promotional displays. ( mark)
6. Assembly-line supervisor's salary .( mark)
7. Cost accountant's salary (the accountant works in the factory). ( mark)
8. Cost of cleaner used to clean appliances when they are completed .( mark)
9. Cost of aluminum used for toasters.( mark)
10. Cost of market research survey.( mark)

1. Classify the costs listed in (c) above as either product costs or period costs. (05 marks). Use a table form provided.

Product

Period

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