Question

Identify each cost as a period cost or a product cost. If it is a product​ cost, further indicate if the cost is direct​ materials, direct​ labor, or manufacturing overhead.​ Then, determine if the product cost is a prime cost​ and/or a conversion cost.

Wages of assembly line workers
Wages of the office receptionist
Property taxes on the factory
Sugar and flour used to make cookies
Salary of the factory maintenance supervisor
Salary of the sales manager

Answer 1

Answer:

1. Wages of assembly line workers  - Product cost - Direct labor - Prime and conversion

2. Wages of the office receptionist  - Period cost

3. Property taxes on the factory - Product cost  - Manufacturing overhead - Conversion

4. Sugar and flour used to make cookies - Product cost  - Direct materials - Prime

5. Salary of the factory maintenance supervisor  - Product cost  - Manufacturing overhead - Conversion

6. Salary of the sales manager - Period cost