Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a product cost or a period cost. If the cost is a product cost, further determine if the cost is direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and then determine if the product cost is a prime cost, conversion cost, or both. If the cost is a period cost, further deter-mine if the cost is a selling expense or administrative expense (Admin). Cost (a) is answered as aguide.

Transcribed Image Text:

Product Period Cost DM DL MOH Prime Consn Selling Admin. a. Metal used for rims X b. Sales salaries c. Rent on factory d. Wages of assembly X. worker e. Salary of production supervisor f. Depreciation on office equipment g. Salary of CEO h. Delivery expense