Trak Corporation incurred the following costs while manufacturing its bicycles.Bicycle components $100,000 Advertising expense $45,000Depreciation on plant 60,000 Property taxes on plant 14,000Property taxes on store 7,500 Delivery expense 21,000Labor costs of assembly-line workers 110,000 Sales commissions 35,000Factory supplies used 13,000 Salaries paid to sales clerks 50,000(a)Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.Bicycle components Period CostsDirect LaborDirect MaterialsManufacturing OverheadDepreciation on plant Direct MaterialsDirect LaborManufacturing OverheadPeriod CostsProperty taxes on store Manufacturing OverheadPeriod CostsDirect MaterialsDirect LaborLabor costs of assembly-line workers Period CostsDirect LaborDirect MaterialsManufacturing OverheadFactory supplies used Direct LaborDirect MaterialsPeriod CostsManufacturing OverheadAdvertising expense Direct LaborDirect MaterialsManufacturing OverheadPeriod CostsProperty taxes on plant Direct LaborManufacturing OverheadDirect MaterialsPeriod CostsDelivery expense Manufacturing OverheadDirect LaborPeriod CostsDirect MaterialsSales commissions Manufacturing OverheadDirect LaborDirect MaterialsPeriod CostsSalaries paid to sales clerks Manufacturing OverheadDirect MaterialsPeriod CostsDirect Labor

Answered: Identify each of the above costs as…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Trak Corporation incurred the following costs while manufacturing its bicycles.

Bicycle components	$100,000	Advertising expense	$45,000
Depreciation on plant	60,000	Property taxes on plant	14,000
Property taxes on store	7,500	Delivery expense	21,000
Labor costs of assembly-line workers	110,000	Sales commissions	35,000
Factory supplies used	13,000	Salaries paid to sales clerks	50,000

(a)

Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.

Bicycle components		Period CostsDirect LaborDirect MaterialsManufacturing Overhead
Depreciation on plant		Direct MaterialsDirect LaborManufacturing OverheadPeriod Costs
Property taxes on store		Manufacturing OverheadPeriod CostsDirect MaterialsDirect Labor
Labor costs of assembly-line workers		Period CostsDirect LaborDirect MaterialsManufacturing Overhead
Factory supplies used		Direct LaborDirect MaterialsPeriod CostsManufacturing Overhead
Advertising expense		Direct LaborDirect MaterialsManufacturing OverheadPeriod Costs
Property taxes on plant		Direct LaborManufacturing OverheadDirect MaterialsPeriod Costs
Delivery expense		Manufacturing OverheadDirect LaborPeriod CostsDirect Materials
Sales commissions		Manufacturing OverheadDirect LaborDirect MaterialsPeriod Costs
Salaries paid to sales clerks		Manufacturing OverheadDirect MaterialsPeriod CostsDirect Labor

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions