Identify the following costs as (a) prime cost, (b) conversion cost, or (c) 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

Question

Identify the following costs as (a) prime cost, (b) conversion cost, or (c) 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

Quizplus · Accepted Answer

The Answer of Identify the following costs as (a) prime cost, (b) conversion cost, or (c) 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

Identify the Following Costs as (A) Prime Cost, (B) Conversion