Question

Brotherton Company is a manufacturer of Blu-ray discs. Place each of the following costs in the appropriate column.
Product cost
Cost item Period cost Direct materials Direct labor Factory overhead
a. Factory maintenance salary, $40,000
b. Salary of factory supervisor, $70,000
c. Salary of production worker, $42,000
d. Salary of the company's president, $100,000
e. Television advertising, $25,000
f. Property tax on factory, $15,000
g. Sales commissions, $65,000
h. Depreciation on factory equipment, $17,000
i. Plastic used in the manufacture of the discs, $14,000

Answer

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