Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 7

A Prime and conversion costs
Identify the following costs as a prime cost (P), conversion cost (C), or both (D), for an automobile manufacturer:
a. Wages of employees that operate painting equipment
b. Wages of the plant manager
c. Steel
d. Oil used for assembly line machinery
B Prime and conversion costs
Identify the following costs as a prime cost (P), conversion cost (C), or both (D), for an magazine publisher:
a. paper used for the magazine
b. Wages of printing machine employees.
c. Glue used to bind magazine
d. Maintenance on printing machines