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Question
Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.
| Product Cost | |||||
| Cost Item | Period Cost | Direct Materials | Direct Labor | Factory Overhead | |
| a. | Factory maintenance salary, $40,000 | ||||
| b. | Salary of factory supervisor, $70,000 | ||||
| c. | Salary of production worker, $42,000 | ||||
| d. | Salary of the companys president, $100,000 | ||||
| e. | Television advertising, $25,000 | ||||
| f. | Property tax on factory, $15,000 | ||||
| g. | Sales commissions, $65,000 | ||||
| h. | Depreciation on factory equipment, $17,000 | ||||
| i. | Plastic used in the manufacture of the CDs, $14,000 | ||||
Answer
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