xercise 14-03 a (Video)

Trak Corporation incurred the following costs while manufacturing its bicycles.

Bicycle components

$100,000Advertising expense$45,000Depreciation on plant60,000Property taxes on plant14,000Property taxes on store7,500Delivery expense21,000Labor costs of assembly-line workers110,000Sales commissions35,000Factory supplies used13,000Salaries paid to sales clerks50,000

(a)

Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.

Bicycle components

Direct LaborPeriod CostsDirect MaterialsManufacturing Overhead

Depreciation on plantPeriod CostsDirect MaterialsManufacturing OverheadDirect Labor

Property taxes on storeDirect MaterialsDirect LaborManufacturing OverheadPeriod Costs

Labor costs of assembly-line workersDirect MaterialsPeriod CostsManufacturing OverheadDirect Labor

Factory supplies usedPeriod CostsManufacturing OverheadDirect LaborDirect Materials

Advertising expensePeriod CostsDirect MaterialsManufacturing OverheadDirect Labor

Property taxes on plantDirect MaterialsPeriod CostsManufacturing OverheadDirect Labor

Delivery expenseDirect LaborDirect MaterialsManufacturing OverheadPeriod Costs

Sales commissionsDirect MaterialsManufacturing OverheadPeriod CostsDirect Labor

Salaries paid to sales clerksManufacturing OverheadDirect LaborPeriod CostsDirect Materials