Georgia Pacific, a manufacturer, incurs the following costs.
(1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost.
(2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object.

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Product Cost Prime Direct Direct Period Direct Indirect Cost Materials Labor Labor Overhead Cost Cost Cost . Factory utilities 3. Amortization of patents on factory machine 4. State and federal Income taxes 5. Office supplles used 6. Insurance on factory building 7. Wages to assembly workers