(Product and period costs) T. Smith Company incurred the following costs in May 2006:

• Paid a six-month premium for insurance of company headquarters, $24,000.

• Paid three months of property taxes on its factory building, $15,000.

• Paid an $80,000 bonus to the company president.

• Accrued $20,000 of utility costs, of which 40 percent was for the head¬ quarters and the remainder was for the factory.

a. What expired period cost is associated with the May information?

b. What unexpired period cost is associated with the May information?

c. What product cost is associated with the May information?

d. Discuss why the product cost cannot be described specifically as expired or unexpired in this situation.

LO1.