Question

Stoney Saure, Votives, Inc.’s accountant, must group the costs of manufacturing tealights. Indicate whether each of the following items should be classified as direct materials (DM), direct labor (DL), overhead (O), or none of these (N). Also indicate whether each is a prime cost (PC), a conversion cost (CC), or neither (N).
a. Cost of wax
b. Depreciation of the cost of vats to hold melted wax
c. Cost of Gigi’s time to dip the wicks into the wax
d. Rent on the factory where candles are made
e. Cost of coloring for candles
f. Steve’s commission to sell candles to Brightlights, Inc.
g. Cost of Ramos’s time to design candles for Halloween



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  • CreatedMarch 26, 2014
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