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 deter-mine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as aguide.

 

Product Period Cost DM DL MOH Prime Conversion Selling Admin. a. Metal used for rims b. Sales salaries C. Rent on factory d. Wages of assembly workers . Salary of production supervisor f. Depreciation on office equipment g. Salary of CEO h. Delivery expense