Answer:
See the explanation below.
Explanation:
Too answer the question, each of the cost items is first explained as follows:
a. Direct materials cost: These materials and supplies that are used when a product is being manufactured.
b. Direct labor: This is labor that is involved in converting materials to finished good. They are directly involved in production.
c. Manufacturing overhead: These are cost incurred in the process of producing a good.
d. Period costs: These are part of selling and administrative expenses.
Based on the above, each of the costs can be identified as follows:
Bicycle components $100,000 = direct materials
Advertising expense $45,000 = period costs
Depreciation on plant 60,000 = manufacturing overhead
Property taxes on plant 14,000 = manufacturing overhead
Property taxes on store 7,500 = period costs
Delivery expense 21,000 = period costs
Labor costs of assembly-line workers 110,000 = direct labor
Sales commissions 35,000 = period costs
Factory supplies used 13,000 = direct materials
Salaries paid to sales clerks 50,000 = period costs
