Asked by Jordan Tongen on May 20, 2024
Verified
Presented below are Truck Company's monthly manufacturing cost data related to its personal computer products. A) Taxes on factory building $820,000\begin{array}{lr}\text { Taxes on factory building } & &&&&&\$ 820,000 \\\end{array} Taxes on factory building $820,000
B) Raw materials 66,000\begin{array}{lr}\text { Raw materials } &&&&&&&&&&& 66,000 \\\end{array} Raw materials 66,000
C) Depreciation on manufacturing equip. 210,000\begin{array}{lr}\text { Depreciation on manufacturing equip. } & 210,000 \\\end{array} Depreciation on manufacturing equip. 210,000
D) Wages for assembly line workers 340,000\begin{array}{lr}\text { Wages for assembly line workers } &&& 340,000\end{array} Wages for assembly line workers 340,000 Instructions
Enter each cost item in the following table placing an "X" under the appropriate headings. Product Costs Direct Materials Direct Labor Manufacturing Overhead (a) (b) (c) (d) \begin{array}{ccc}&&\text { Product Costs }\\&\text { Direct Materials}&\text { Direct Labor}&\text { Manufacturing Overhead } \\\text { (a) } \\\text { (b) } \\\text { (c) } \\\text { (d) }\end{array} (a) (b) (c) (d) Direct Materials Product Costs Direct Labor Manufacturing Overhead
Product Costs
The costs directly related to the creation of a product, including raw materials, labor, and overhead.
Direct Materials
Raw materials that can be directly traced to the production of a specific product and are considered a variable cost.
Direct Labor
Labor costs associated directly with the manufacturing of goods or delivery of services, typically including wages of workers who physically produce a product.
- Differentiate between product costs and period costs, including their classifications.
Verified Answer
MM
Morgan MauroMay 20, 2024
Final Answer :
Product Costs Direct Materials Direct Labor Manufacturing Overhead (a) × (b) × (c) × (d) ×\begin{array}{ccc}&&\text { Product Costs }\\&\text { Direct Materials}&\text { Direct Labor}&\text { Manufacturing Overhead } \\\text { (a) } &&& \times\\\text { (b) }& \times\\\text { (c) }&&& \times \\\text { (d) }&& \times \end{array} (a) (b) (c) (d) Direct Materials× Product Costs Direct Labor× Manufacturing Overhead ××
Learning Objectives
- Differentiate between product costs and period costs, including their classifications.