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Category > Accounting Posted 26 Sep 2017 My Price 9.00

dairy processing company

Classify costs incurred by a dairy processing company

Each of the following costs pertains to Dairy Plains, a dairy processing company. Classify each of the company's costs as a period cost or an inventoriable product cost. Further classify inventoriable product costs as direct material (DM), direct labor (DL), or manufacturing overhead (MOH).

 

Cost

Period Cost or Incentoriable Product Cost?

DM, DL, or MOH?

1.

Cost of milk purchased from local dairy farmers

    

2.

Lubricants used in running bottling machines

    

3.

Depreciation on refrigerated trucks used to collect raw milk from local dairy farmers

    

4.

Property tax on dairy processing plant

    

5.

Television advertisements for Dairy Plains’ products

    

6.

Gasoline used to operate refrigerated trucks delivering finished dairy products to grocery stores

    

7.

Company president’s annual bonus

    

8.

Plastic gallon containers in which milk is packaged

    

9.

Depreciation on marketing department’s computers

    

10.

Wages and salaries paid to machine operators at dairy processing plant

    

11.

Research and development on improving milk pasteurization process

 

Answers

Maurice Tutor
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Status NEW Posted 26 Sep 2017 06:09 PM My Price 9.00

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