Question

Seth's Skateboard Company incurs the costs listed in the table below Required For each of the following costs, choose "Yes" to indicate the category of product cost and whether it is a prime cost, conversion cost, or both. (Select 'No' in the inappropriate cells.) PRODUCT COSTS Direct Materials DirectManufacturing Perio Overhead Prime Cost Conversion Cost Labor Cost Production supervisor salary Cost of fiberglass Wages of assembly person Sales commission Cost of high-grade wheels Screws Factory rent Wages of skateboard painter Factory utilities Utilities for corporate office

Answer 1

		Product Cost
	Direct Material	Direct Labour	Manufacturing Overhead	Period Cost	Prime Cost	Conversion Cost
Production supervisor salary	No	No	Yes	NO	No	Yes
Cost of fiberglass	Yes	NO	NO	NO	Yes	NO
Wages of assembly person	No	Yes	NO	NO	Yes	Yes
Sales commission	NO	NO	NO	Yes	NO	NO
Cost of high—grade wheels	Yes	NO	NO	NO	Yes	NO
Screws	NO	NO	Yes	NO	NO	Yes
Factory rent	NO	NO	Yes	NO	NO	Yes
Wages of skateboard painter	No	Yes	NO	NO	Yes	Yes
Factory utilities	No	No	Yes	NO	No	Yes
Utilities for corporate office	NO	NO	NO	Yes	No	NO