Exercise 14-6 Cost classification LO C3 Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify...

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Exercise 14-6 Cost classification LO C3 Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify each cost as

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		Product or Period	Direct materials, Direct labor or Factory Overhead	Prime or Conversion	Direct or Indirect
1	Wages to Assembly workers	Product	Direct Labor	Prime and Conversion	Direct
2	Factory water usage	Product	Factory Overhead	Conversion	Indirect
3	Rent on factory building	Product	Factory Overhead	Conversion	Indirect
4	Steering wheels used in cars	Product	Direct materials	Prime	Direct
5	Factory electricity	Product	Factory Overhead	Conversion	Indirect
6	Amortization of patents on factory machine	Product	Factory Overhead	Conversion	Indirect

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