Product cost or a nonproduct cost

Murphy, a firm that produces ping-pong paddles, expects to incur the following costs in its manufacturing process. The ping-pong paddles it manufactures consist of a wooden paddle, a handle, and a rubber backing for the paddle. Determine whether each of the following costs is a product cost or a nonproduct cost. Use P for product cost and NP for nonproduct cost.

________ A. Cost of handles for the paddles

________ B. Wages of the assembly-line workers

________ C. Rent on the production facilities

________ D. Utilities for the production facilities

________ E. Wages of sales personnel

________ F. Cost of the wooden paddles

________ G. Cost of glue used to adhere the rubber backing

________ H. Cost of shipping crates

________ I. Cost of office supplies

________ J. Cost of rubber backing

________ K. Cost of supervisor in production facilities

________ L. Depreciation on the delivery trucks

________ M. Office workers’ salaries

________ N. Cost of janitorial staff in production facilities

________ O. Cost of workers who cut the rubber backing


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