Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further determine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as a guide.
Solution:
	Cost			Product					Period
				DM	DL	MOH	Prime	Conversion	Selling	Admin.
	a. Metal used for rims			X			X
	b. Sales salaries
	c. Rent on factory
	d. Wages of assembly
	workers
	e. Salary of production
	supervisor
	f. Depreciation on
	office equipment
	g. Salary of CEO
	h. Delivery expense