Question: Section B: PROBLEM SOLVING QUESTIONS (80 Marks) Question 1 Consider the following items: A. Tomatoes used in the manufacture of Adi ketchup B.Administrative salaries of

Section B: PROBLEM SOLVING QUESTIONS (80 Marks) Question 1 Consider the following items: A. Tomatoes used in the manufacture of Adi ketchup B.Administrative salaries of executives employed by Sky Airlines C.Wages of assembly-line workers at Ahmad plant D. Marketing expenditures of the Unitar baseball club E.Commissions paid to Coca-Cola's salespeople F.Straight-line depreciation on manufacturing equipment owned by Dell Computer G.Shipping charges incurred by Office Depot on out-going orders H.Speakers used in Sony home theater systems 1.Insurance costs related to Mary Kay Cosmetics' manufacturing plant Required: Complete the following table and classify each of the costs listed as (1) a product or period cost and (2) a variable or fixed cost by placing an "X" in the appropriate column. Refer to Item A as an example. Product or Period Cost Product Period X Variable or Fixed Cost Variable Fixed X Item A B D E F G H 1 (16 Marks)
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