Werribee Manufacturing Co.wants to classify costs for the product produced at its facility.The company produces only one product at the facility and operates continually.The cost categories are:
Product cost
Prime cost
Conversion cost
Period cost
The following costs are found in the accounting records:
a.Quality control inspection wages
b.Raw material purchases
c.Sales commissions
d.Factory depreciation
e.Assembly wages
Required:
Assign each of the above costs to the most appropriate cost categories.
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_____________________________________________________________________________________________

Question

Quizplus · Accepted Answer

The Answer of Werribee Manufacturing Co.wants to classify costs for the product produced at its facility.The company produces only one product at the facility and operates continually.The cost categories are:
Product cost
Prime cost
Conversion cost
Period cost
The following costs are found in the accounting records:
a.Quality control inspection wages
b.Raw material purchases
c.Sales commissions
d.Factory depreciation
e.Assembly wages
Required:
Assign each of the above costs to the most appropriate cost categories.
_____________________________________________________________________________________________
_____________________________________________________________________________________________