The following ore some of the costs incurred by Cupcake Company Identify them at

Question

The following ore some of the costs incurred by Cupcake Company Identify them at either: Direct Materials Direct Labor Factory Overhead Non manufacturing cost Salesman commissions Factory rent Depreciation expense - factory Frosting Baker's wages Depreciation expense - of Ticc Cupcake mix Sprinkles for decoration (indirect material) The following are some of the costs incurred by Cupcake Company. Identify them us either Prime costs Conversion costs Both prime and conversion costs Neither prime or conversion costs Salesman commissions Factory rent Depreciation expense - factory Frosting Baker's wages Depreciation expense - office Cupcake mix Sprinkles for decoration (indirect material)

Explanation / Answer

Answer:

1)

Direct Material – Cupeake Mix, frosting

Direct Labor – Baker’s Wages,

Factory Overhead – Depreciation Expense – factory, Factory Rent, Sprinkles for decoration (indirect material)

Non Manufacturing Cost --- Salesman Commission, Depreciation Expenses –Office

2)

Prime Cost- Frosting, Baker’s Wages

Conversion Cost – Baker’s Wages, factory rent, depreciation expenses-factory

Both prime and conversion costs – Baker’s Wages

Neither prime or conversion Costs –Salesman commission, Depreciation Expenses – Office, Sprinkles for decoration (indirect material)

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