Question 1. (6 Marks)

Case 1. Book Problem (3 Marks). The Ohno Company is a manufacturer of laptop computers. Ohlos monthly manufacturing cost and other expenses data are as follows:

Required:

The company intends to classify the above costs and expenses into the following categories:

1) Prime costs 2) Conversion costs 3) Factory overhead 4) Period costs

Use the table below and record the amount in the appropriate column category.

Cost Item	Cost		Prime cost	Conversion Cost	Factory Overhead	Period Costs
Rent on Factory equipment	11,000
Insurance on factory building	1,500
Raw materials	75,000
Sales Commissions	10,000
Utility costs for factory	900
Supplies for general office	300
Wages for assembly line workers	58,000
Depreciation on office equipment	800
Miscellaneous materials (Glue etc.)	1,100
Factory managers salary	5,700
Property taxes on factory building	400
Advertising for the laptops	14,000
Office Supervisor Salary	16,000
Depreciation of factory building	1,500