Murphy, a firm that produces ping- pong paddles, expects to incur the following costs in its manufacturing process. The ping- pong paddles it manufactures consist of a wooden paddle, a handle, and a rubber backing for the paddle. Determine whether each of the following costs is a product cost or a non-product cost. Use P for product cost and NP for non-product cost.
________ A. Cost of handles for the paddles
________ B. Wages of the assembly- line workers
________ C. Rent on the production facilities
________ D. Utilities for the production facilities
________ E. Wages of sales personnel
________ F. Cost of the wooden paddles
________ G. Cost of glue used to adhere the rubber backing
________ H. Cost of shipping crates
________ I. Cost of office supplies
________ J. Cost of rubber backing
________ K. Cost of supervisor in production facilities
________ L. Depreciation on the delivery trucks
________ M. Office workers’ salaries
________ N. Cost of janitorial staff in production facilities
________ O. Cost of workers who cut the rubber backing

  • CreatedMarch 25, 2015
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