Chapter 2, Problem 9E

To determine

Product Cost: Product cost refers to the costs that are incurred in the manufacturing of any product. It includes direct materials, direct labour, and manufacturing overhead.

Period Cost: Period cost are costs that are not directly related to manufacturing of any products. All costs that are not included in the product cost called period cost. It generally includes selling expenses, marketing expenses, and administrative expenses.

Prime Cost: Prime cost means direct cost of manufacturing a product and it included direct materials cost and direct labour cost.

Conversion Cost: Conversion costs are the costs that are required to be incurred to convert raw materials into finished products. It includes direct labour and manufacturing overhead.

Determine the following:

1. The total amount of product costs.
2. The total amount of period costs.
3. The total amount of conversion costs.
4. The total amount of prime costs.