off 5. Drum stands 6 Rent cost of equipment for sales staff 7.Upper management s

Question

off 5. Drum stands 6 Rent cost of equipment for sales staff 7.Upper management salaries 8. Annual flat fee for maintenance service 9. Sales and then determnine if it's a product or period. For the product costs you won't just write an -you need to further determine if the cost is Direct Labor (DL.), direct materials (DM or would be put into overhead (OH). Put DL, DM, or OH in the Product column, if you determine the cost to be a product cost: it it's a period cost, jpust put an Y. Use·rs" in the direct/ndrect courms. Thes one should be chalereng so niate aide on t10 E. For this exercise, use finished booksheles as your cost object. For type of cost determine f its direct or indirect Product Period Diret Indirect Type of Cost Factory utlities 3. Amortizration of patents on factory machine 4 Office supplies used 3 State and Sederal income taxies Bad debt expense Small tools used 6. · on facton actory building Accident irance 11. Wages to assembly workers 12, Direct materials used thine Hin URTLE BEACH Cancel

Explanation / Answer

Type of cost Product Period Direct Indirect Factory utilities X X Advertising X X Amortization of patents on factory machine X X Office supplies used X X State and federal income taxes X X Bad debt expense X X Small tools used X X Payroll taxes for production supervisors X X Accident insurance on factory workers X X Depreciation - Factory building X X Wages to assembly workers X X Direct materials used X X

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