Task Team of FUNDAMENTAL ACCOUNTING School of Business Sun Yat-sen University and easily identified with a particular product, for example: steel used to manufacture an automobile; (2)direct labour, labour costs that are clearly traceable to, or readily identifiable with he finished product, for example: wages paid to an automobile assembly worker; (3) manufacturing overhead, all manufacturing costs except direct material and direct labour, that is manufacturing costs that cannot be traced directly to specific units produced. For examples indirect labour maintenance, indirect material -cleaning supplies, factory util ity costs, and supervisory costs Manufacturing costs are often combined as follows: (1) prime cost, including direct material and direct labour; (2)conversion cost, including direct labour and manufacturing overhead Non-Manufacturing costs(period costs)are expenses not charged to the product (1)Selling costs,costs incurred to obtain customer orders and to deliver finished goods to customers advertising and shipping; (2)Administrative costs, non- manufacturing costs of staff support and dministrative functions-accounting, data processing, personnel, research and development Discussions ABC company manufactures a portable radio designed for mounting on the wall of the bathroom. The following list represents some of the different types of costs incurred in the manufacture of these radios 1)The plant manager's salary 2)The cost of heating the plant 3)The cost of heating executive offices 4)The cost of printed circuit boards used in the radios 5)Salaries and commissions of company salespersons 6) Depreciation on office equipment used in the executive offices 7)De production equipment used in pla 8)Wages of janitorial personnel who clean the plant 9)The cost of insurance on the plant building 0)The cost of electricity to light the plant I 1) The cost of electricity to power plant equipment 12)The cost of maintaining and repairing equipment in the plant 13)The cost of printing promotional materials for trade shows 14)The cost of solder used in assembling the radios 15)The cost of telephone service for the executive offices Required Classify each of the items above as product cost or period costs 1)Product 2)Pr 3)Period 4)Product 5)Period 6) Peric 7) Product 8)ProductTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University and easily identified with a particular product, for example: steel used to manufacture an automobile; (2) direct labour, labour costs that are clearly traceable to, or readily identifiable with, the finished product, for example: wages paid to an automobile assembly worker; (3) manufacturing overhead, all manufacturing costs except direct material and direct labour, that is , manufacturing costs that cannot be traced directly to specific units produced. For examples: indirect labour – maintenance, indirect material – cleaning supplies, factory utility costs, and supervisory costs. Manufacturing costs are often combined as follows: (1) prime cost, including direct material and direct labour; (2) conversion cost, including direct labour and manufacturing overhead. Non-Manufacturing costs (period costs) are expenses not charged to the product. (1) Selling costs, costs incurred to obtain customer orders and to deliver finished goods to customers —advertising and shipping; (2) Administrative costs, non-manufacturing costs of staff support and administrative functions —accounting, data processing, personnel, research and development. Discussions ABC company manufactures a portable radio designed for mounting on the wall of the bathroom. The following list represents some of the different types of costs incurred in the manufacture of these radios: 1) The plant manager's salary. 2) The cost of heating the plant. 3) The cost of heating executive offices. 4) The cost of printed circuit boards used in the radios. 5) Salaries and commissions of company salespersons. 6) Depreciation on office equipment used in the executive offices. 7) Depreciation on production equipment used in plant. 8) Wages of janitorial personnel who clean the plant. 9) The cost of insurance on the plant building. 10) The cost of electricity to light the plant. 11) The cost of electricity to power plant equipment. 12) The cost of maintaining and repairing equipment in the plant. 13) The cost of printing promotional materials for trade shows. 14) The cost of solder used in assembling the radios. 15) The cost of telephone service for the executive offices. Required: Classify each of the items above as product cost or period costs. Answer: 1) Product. 2) Product. 3) Period. 4) Product. 5) Period. 6) Period. 7) Product. 8) Product