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154 identify the following costs as a prime cost b conversion cost c or both for a c 4298968


154. Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory.

1. _____ Frosting
2. _____ Wages of the baker
3. _____ Sprinkles for the topping (considered an indirect material)
4. _____ Depreciation on oven 


155. Identify the following costs as a (a) product cost or (b) period cost for a cake factory.

1. _____ Frosting
2. _____ Baker’s wages
3. _____ Advertising fees
4. _____ Transportation out 



156. The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.

Cost of materials placed in production


Direct labor


Factory overhead


Work in process, March 1


Work in process, March 31


Finished goods inventory, March 1


Finished goods inventory, March 31







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