Classification of Costs
Using the Code Letters Below, Indicate in the Space

question 105

Essay

Classification of costs
Using the code letters below, indicate in the space provided how each of the following costs should be classified in the indicated manufacturing company:
$$\begin{array} { | l | l | } \hline & \text { Code Letters } \\\hline \text { DM = Direct materials } & \text { WP = Work in process } \\\hline \text { DL = Direct labor } & \text { FG = Finished goods } \\\hline \text { MO = Manufacturing overhead } & \text { PC Period cost } \\\hline\end{array}$$
Costs
______ (a) Research and development costs incurred by Martin, manufacturer of derailleurs, brakes, and other component parts for bicycles in its efforts to develop new products.
______ (b) Salaries paid by Martin to the plant managers supervising production operations.
______ (c) An inventory of Martin Group 105 components purchased by Earl Bicycle Corporation for use in the manufacture of Earl 's Model 1200 aluminum bicycle.
______ (d) An inventory of Model 1200 bicycle frames manufactured by Earl. Prior to sale, these frames will be painted and equipped with derailleurs, brakes, and other component parts.
______ (e) Salaries paid by Earl to its sales personnel.
______ (f) Salaries paid by Earl to employees who install derailleurs, brakes, and other component parts on the bicycle frames.
______ (g) An inventory of Martin Group 105 derailleurs awaiting sale to customers.

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Definitions:

Penal System

The network of agencies and processes established by governments to manage individuals accused and convicted of crimes, including law enforcement, courts, and correctional institutions.

Recidivism

The tendency of a convicted criminal to reoffend, often used as a measure of the effectiveness of criminal justice systems.

Radical Non-Intervention

A strategy in criminal justice which suggests that refraining from penal intervention in the lives of youths who commit crimes might lead to better outcomes than formal processing and punishment.

Moral Panic

Moral panic is a widespread feeling of fear, often an irrational one, that some evil threatens the well-being of society, leading to demands for immediate and strong actions to be taken.