The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Best Bikes.

Required

1. Classify each cost as either a product or period cost.

2. Classify each product cost as either direct materials, direct labor, or factory overhead.

3. Classify each period cost as either selling expenses or general and administrative expenses.

Transcribed Image Text:

Advertising expense Depreciation expense-Office equipment. Depreciation expense-Selling equipment Depreciation expense-Factory equipment. Factory supervision .... Factory supplies used (indirect materials) . Factory utilities.. Direct labor. Indirect labor Miscellaneous production costs Office salaries expense.. Raw materials purchases (direct materials) . Rent expense-Office space.. Rent expense-Selling space Rent expense-Factory building .... Maintenance expense-Factory equipment 8,440 70,875 894,375 23,625 27,000 93,500 30,375 4,942,625 295,300 $ 20,250 8,440 10,125 35,400 121,500 6,060 37,500 562,500 59,000 Sales... Sales salaries expense