Author Question: Sue's Lakeside Ice Cream Shop makes and sells frozen treats at a lakeside resort. Sue has two ... (Read 121 times)

trevg · **on:** Feb 5, 2023

Sue's Lakeside Ice Cream Shop makes and sells frozen treats at a lakeside resort. Sue has two full-time employees who make the treats at a facility rented near the lake. The treats are then delivered to the ice cream shop where Sue sells them. Indicate whether each of the following costs that Sue might incur would be considered a product cost. If the cost is a product cost, classify it as direct materials, direct labor, indirect materials, indirect labor, or manufacturing overhead. If the cost is not a product cost, classify it with N/A.

a.	Cost of ice used to freeze ice cream

b.	Purchase price of a van to deliver treats to the shop

c.	Electricity used to run the ice cream machines

d.	Salary of the two employees making the treats

e.	Sue's salary

f.	Rent on the ice cream shop

g.	Rent on the facility where the treats are made

h.	Cost of ice cream cones

i.	Cost of flyers distributed to all lakefront cottages to advertise

Sue's Lakeside Ice Cream Shop

j.	Cost of napkins available to customers

psuniv · **Reply #1 on:** Feb 5, 2023

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