Saturday, 19 May 2012

Seth’s Skateboard Company has provided the following information about its company.

Seth’s Skateboard Company has provided the following information about its company.

Required:
For each of the following costs, choose "Yes" or "No" to indicate the category of product cost (or period cost) and whether it is a prime cost, conversion cost, both, or neither.

Product Cost

Direct Materials Direct Labor Manufacturing
Overhead
Period Cost Prime Cost Conversion Cost
  Production supervisor
  salary
  No correct   No correct   Yes correct   No correct   No correct   Yes correct
  Cost of fiberglass   Yes correct   No correct   No correct   No correct   Yes correct   No correct
  Wages of assembly
  person
  No correct   Yes correct   No correct   No correct   Yes correct   Yes correct
  Sales commission   No correct   No correct   No correct   Yes correct   No correct   No correct
  Cost of high-grade
  wheels
  Yes correct   No correct   No correct   No correct   Yes correct   No correct
  Screws   No correct   No correct   Yes correct   No correct   No correct   Yes correct
  Factory rent   No correct   No correct   Yes correct   No correct   No correct   Yes correct
  Wages of skateboard
  painter
  No correct   Yes correct   No correct   No correct   Yes correct   Yes correct
  Factory utilities   No correct   No correct   Yes correct   No correct   No correct   Yes correct
  Utilities for corporate
  office
  No correct   No correct   No correct   Yes correct   No correct   No correct

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