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1. Using the code letters below, indicate in the space provided how each of the

ID: 2562026 • Letter: 1

Question

1. Using the code letters below, indicate in the space provided how each of the following costs should be classified in the indicated pen manufacturing company Code Letters DM -Direct materials DL Direct labor MO = M WP = Work in process FG Finished goods anufacturing overhead PC Period cost (a) Property tax on the factory building. (b) The chief financial officer's salary. -(c) Plastic used to manufacture pens. (d) Janitors at the factory. (e) Manufactured pens waiting to be sold to customers (f) Advertising logos (g) Partially completed pens.

Explanation / Answer

(a) Property tax on the factory building. - MO

(b) The chief financial officer's salary. - PC

(c) Plastic used to manufacture pens. - DM

(d) Janitors at the factory. - MO

(e) Manufactured pens waiting to be sold to customers. - FG

(f) Advertising logos. - PC

(g) Partially completed pens. - WP