HDRIDER44
Sep 4, 2010, 01:07 PM
Cherry Computers assembles computers from components supplied by various manufacturers. Listed below are some of the costs that are incurred by the computer company this year:
Insurance on the Assembly facility $ 3,000
Cost of hard drives installed in computers $ 50,000
Cost of advertising (aids in selling the product) $ 5,000
Wages of employees who assembles the $ 100,000
Computers.
Wages of shop supervisor $ 60,000
Depreciation on testing and assembly Equipment $ 4,000
Salary of the accountant who performs an $ 55,000
Administrative function
From the information given above, select the accounts that are best classified as indirect product costs for the year.
Insurance on the Assembly facility $ 3,000
Cost of hard drives installed in computers $ 50,000
Cost of advertising (aids in selling the product) $ 5,000
Wages of employees who assembles the $ 100,000
Computers.
Wages of shop supervisor $ 60,000
Depreciation on testing and assembly Equipment $ 4,000
Salary of the accountant who performs an $ 55,000
Administrative function
From the information given above, select the accounts that are best classified as indirect product costs for the year.