Question

Cost Identification Mr. John Black began his pottery manufacturing business several years ago. The following costs occurred during 2016, please use the cost classification method to put them in to proper cost group

1) As the business owner, John's salary $5000 per month

2) Workshop Building rent, $2800 per month

3) Clay and glaze $2 per pottery

4)Wages of production worker, $12/pottery

5) Advertising, $800 per month

6) Sales commission, $10 / pottery

7) Rent of production equipment, $300 /month

8) Amortization of office copier machine $500

9) Rent of sales office $500 per month

10) Phone for taking orders $40 per month

11) Interest lost on savings account, $1200 per year

Answer 1