Refer to the Lopez Plastics Company example on pages 136–140 and to Exhibit 4-7. The following list gives various resources used by Lopez Plastics Company. Use the letters D, I and U to indicate how the cost of each resource would be classified with respect to products manufactured: D = direct, I = indirect, and U = unallocated.
1. Depreciation of the plant
2. Resin used to make pen casings
3. Salary of plant manager
4. Salaries of cost accountants
5. Depreciation on computers used by engineers to design cell phone casings
6. Salaries of engineers
7. Salaries of operating labor processing pen casings
8. Travel costs of purchasing agent while investigating potential new suppliers of resin

  • CreatedNovember 19, 2014
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