“Identify each cost as a period cost or a product cost. If it is a product cost, further indicate if the cost is direct materials, direct labor, or manufacturing overhead. Then, determine if the product cost is a prime cost and/or a conversion cost. 11. Wages of Assembly line workers12. Wages of the office receptionist13. Property taxes on the factory14. Sugar and flour used to make cookies15. Salary of the factory maintenance supervisor16. Salary of the sales manager”
11. Wages of Assembly line workers: Product cost / direct labor / prime and conversion cost12. Wages of the office receptionist: period cost / n/a / n/a13. Property taxes on the factory: product cost / manufacturing overhead / conversion cost14. Sugar and flour used to make cookies: product cost / direct materials / prime cost15. Salary of the factory maintenance supervisor: product cost / manufacturing overhead / conversion cost16. Salary of the sales manager: period cost / n/a / n/a