Product and period costs OBJ. 2 Identify the following costs as a product cost or a period cost for a magazine publisher:

a. Sales salaries

b. Paper used for the magazine

c. Maintenance on printing machines

d. Depreciation expense—corporate headquarters Cost of goods sold, cost of goods manufactured OBJ. 3 Timbuk 3 Company has the following information for March:

Cost of direct materials used in production $21,000 Direct labor 54,250 Factory overhead 35,000 Work in process inventory, March 1 87,500 Work in process inventory, March 31 92,750 Finished goods inventory, March 1 36,750 Finished goods inventory, March 31 42,000 For March, determine

(a) the cost of goods manufactured and

(b) the cost of goods sold.

Cost of goods sold, cost of goods manufactured OBJ. 3 Ebony Company has the following information for July:

Cost of direct materials used in production $67,200 Direct labor 88,000 Factory overhead 44,800 Work in process inventory, July 1 32,800 Work in process inventory, July 31 29,600 Finished goods inventory, July 1 37,600 Finished goods inventory, July 31 27,200 For July, determine

(a) the cost of goods manufactured and

(b) the cost of goods sold.

SHOW ME HOW SHOW ME HOW SHOW ME HOW Exercises Classifying costs as materials, labor, or factory overhead OBJ. 2 Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:

a. Depreciation of robotic assembly line equipment

b. V8 automobile engine

c. Steering wheel

d. Wheels

e. Painting safety masks for employees working in the paint room

f. Salary of test driver g. Glass used in the vehicle’s windshield h. Wages of assembly line worker