Question

. Hormel Foods Company incurs manufacturing costs during the month

    of August. (shown on “answer page”)

     

     

    

     INSTRUCTIONS

     For each of the costs listed, determine the type of cost and complete the

    following matrix by placing an X mark under the appropriate headings.

Direct Materials

Direct Labor

Mfg. Overhead

Period Costs

Answer 1

Answer:-

Given condition,

• Hormel Foods Company incurs manufacturing costs during the month of August.

Here we have some particulars to create a record of some particular month accounts.

Now we are taking the august month.

The particulars are given as followsl :

1. Sales commission
2. Income tax
3. Advertising
4. Raw materials
5. factory utilities
6. Factory building tax
7. factory equipment
8. Production material
9. Factory maintenance
10. Salary's for workers
11. Insurance for the factory
12. line wages for Assembly

Now , For each of the costs listed, determine the type of cost and complete the following matrix by placing an X mark under the appropriate headings.

Particulars	Direct Materials	Direct Labor	Mfg. Overhead	Period Costs
1.Sales commission				X
2.Income tax				X
3.Advertising				X
4.Raw materials	X
5.factory utilities			X
6.Factory building tax			X
7.factory equipment			X
8.Production material			X
9.Factory maintenance			X
10.Salary's for workers			X
11.Insurance for the factory			X
12. line wages for Assembly		X