Manufacturing and Nonmanufacturing Cost Terms. Burns Company incurred costs for the following items. |
Required: | | |
a. Indicate whether each item should be categorized as a product or period cost. |
b. Indicate whether each item should be categorized as direct materials, direct labor, manufacturing overhead, selling, or general and administrative. |
| | |
| Product or Period | DM, DL, MOH, Sell, G&A |
Salary of chief financial officer | | |
Factory insurance | | |
Salary for salespeople | | |
Raw materials used in production easily traced to the product | | |
Computer equipment depreciation for accounting department | | |
Insurance for headquarters building | | |
Production line workers | | |
Clerical support for production supervisors | | |
Janitorial services in the production facility | | |
Personnel department supplies | | |
Newspaper advertisements | | |
Supervisor of several production lines | | |
Insurance for factory equipment | | |
Production line workers | | |
Clerical support for sales staff | | |
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