Ehrlich Manufacturing produces small boats. The following list represents some of the different types of costs incurred in the manufacture of these boats Required: Identify the following costs as PRODUCT COST or PERIOD COST. For a product cost, also indicate whether it is direct materials (DM)
2. Ehrlich Manufacturing produces small boats. The following list represents some of the different types of costs incurred in the manufacture of these boats
Required:
Identify the following costs as PRODUCT COST or PERIOD COST. For a product cost, also indicate whether it is direct materials (DM), direct labor (DL), or manufacturing
1. The cost of boxes used in shipping the product to customers
2. The cost of heating the plant.
3. The cost of heating executive offices.
4. The cost of metal boards used in the boats.
5. Salaries and commissions of company salespersons.
6. Depreciation on office equipment used in the executive offices.
7. Depreciation on production equipment used in the plant.
8. Wages of janitorial personnel who clean the plant.
9. The cost of insurance on the plant building.
10. Salaries of the assembly workers.
11. The cost of advertising on TV for the company’s product.
12. The cost of maintaining and repairing equipment in the plant.
13. The cost of printing promotional materials for trade shows.
14. The plant manager’s salary.
15. The cost of telephone service for the executive offices.
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