Answer: Please refer to Explanation
Explanation:
Bicycle components - DIRECT MATERIALS
- Needed in the production of the bicycles.
Depreciation on plant. MANUFACTURING OVERHEAD.
- Indirect expense that relates to the production plant.
Property taxes on store. PERIOD COST.
Expense related to the sales of the bicycles that must be expensed in the period incurred.
Labor costs of assembly-line workers. DIRECT LABOUR.
Main labour associated with the production of the bicycles. They are DIRECTLY involved.
Factory supplies used. MANUFACTURING OVERHEAD.
Used in the Factories but not directly related to the production of the bicycles.
Advertising expense. PERIOD COST.
It is spent in the period that it is incurred therefore it is a period cost.
Property taxes on plant. MANUFACTURING OVERHEAD. Indirect expenses that are incurred in relation to the production of bicycles.
Delivery expense. PERIOD COST.
Expensed in the period it is incurred.
Sales commissions. PERIOD COST.
Expensed in the period it is incurred.
Salaries paid to sales clerks. PERIOD COST.
Expensed in the period it is incurred.
