Place a check mark in the appropriate column to identify whether each of the following costs is a product cost or a period cost. If it is a product cost, further classify it in the last column as direct materials (DM), direct labor (DL) or manufacturing overhead (MO).
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Product Cost
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Period Cost
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DM, DL, MO
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a.
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Cost of supervisory personnel in the factory
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b.
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Direct materials used
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c.
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Salary of the company president
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d.
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Cost of the corporate accounting department
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e.
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Indirect materials used
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f.
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Costs incurred to run the company's credit department
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g.
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Salary of the production superintendent
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h.
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Property taxes for land upon which the factory is located
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i.
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Deprecation on the office machines used in the advertising department
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j.
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Materials used in the production process that do not become part of the finished product
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Cost of Goods Manufactured Statement
ABC Co. is a large manufacturer of electronic game components. At year-end 2015, the following information is obtained from the worksheet. All information is shown in thousands (000s).
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Factory supplies
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$ 3
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Rent on machinery
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40
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Indirect labor
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120
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Beginning Raw Materials Inventory
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500
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Ending Raw Materials Inventory
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850
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Direct Labor
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1,100
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Insurance on factory buildings
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50
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Beginning Work in Process
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700
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Ending Work in Process
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400
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Property taxes on factory
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200
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Advertising expense
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175
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Purchases of raw materials
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900
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REQUIRED: Prepare in good form, a Cost of Goods Manufactured Statement