(a) Specify whether each cost is a product cost or a period cost. (b) For any costs that were determined to be product costs, identify whether the cost is a direct cost or an indirect cost and whether it is a prime cost and/or a conversion cost. (If cost is a period cost select "NA" in "Direct or Indirect" and "Prime or Conversion" columns.) Cost description Wages for hourly factory workers Social media marketing Canvas material Thread for sewing the bags Executive salaries Factory supervisor salaries Depreciation on factory assets Wages and commission to salespeople Utility costs for the factory Amount $45,000 13,000 32,500 1,000 87,000 63,500 39,000 45,000 9,300 Product or Period > > Direct or Indirect Prime or Conversion
(a) Specify whether each cost is a product cost or a period cost. (b) For any costs that were determined to be product costs, identify whether the cost is a direct cost or an indirect cost and whether it is a prime cost and/or a conversion cost. (If cost is a period cost select "NA" in "Direct or Indirect" and "Prime or Conversion" columns.) Cost description Wages for hourly factory workers Social media marketing Canvas material Thread for sewing the bags Executive salaries Factory supervisor salaries Depreciation on factory assets Wages and commission to salespeople Utility costs for the factory Amount $45,000 13,000 32,500 1,000 87,000 63,500 39,000 45,000 9,300 Product or Period > > Direct or Indirect Prime or Conversion
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(a) Specify whether each cost is a product cost or a period cost.
(b) For any costs that were determined to be product costs, identify whether the cost is a direct cost or an indirect cost and
whether it is a prime cost and/or a conversion cost. (If cost is a period cost select "NA" in "Direct or Indirect" and "Prime or Conversion"
columns.)
Cost description
Wages for hourly factory workers
Social media marketing
Canvas material
Thread for sewing the bags
Executive salaries
Factory supervisor salaries
Depreciation on factory assets
Wages and commission to salespeople
Utility costs for the factory
Amount
$45,000
13,000
32,500
1,000
87,000
63,500
39,000
45,000
9,300
Product or Period
>
>
Direct or Indirect
Prime or
Conversion
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