Ryan Corporation incurred the following costs while manufacturing its product.

Materials used in product $100,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 13,000 Salaries paid to sales clerks 50,000 Instructions

(a) Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.

(b) Explain the basic difference in accounting for product costs and period costs.