Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 13Q: What advantage does the FIFO cost method have over the average cost method relative to providing...
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Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.
 
Cost
Product
Period
Direct
Direct
Factory
Selling
Administrative
Direct
Indirect
Prime
Conversion
 
Cost
Materials
Labor
Overhead
Expense
Expense
Cost
Cost
Cost
Cost
Eggs used to make cheesecakes
 
 
 
 
 
 
 
 
 
 
 
 
Baker’s wages
 
 
 
 
 
 
 
 
 
 
 
 
Delivery driver wages
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation of office computers
 
 
 
 
 
 
 
 
 
 
 
 
Power to run the cheesecake ovens
 
 
 
 
 
 
 
 
 
 
 
 
President’s salary
 
 
 
 
 
 
 
 
 
 
 
 
Sales commissions
 
 
 
 
 
 
 
 
 
 
 
 
Factory supervisor salary
 
 
 
 
 
 
 
 
 
 
 
 
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