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