Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense

Question

3 years ago

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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 select a classification Depreciation o

Business

1 answer:

BaLLatris [955] · Answer 1 · 2022-08-21T11:27:34+03:00

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

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.

- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.

- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

Direct material: