101. Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory.1. _____ Frosting2. _____ Wages of the baker3. _____ Sprinkles for the topping (considered an...

101. 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

1. a
2. c
3. b
4. b

102. 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

1. a
2. a
3. b
4. b