1.0The following is a list of costs that were incurred in the production and sale of lawn mowers. a. Tires for lawn mowers.

b. Salary of factory supervisor.

c. Gasoline engines used for lawn mowers.

d. Premiums on insurance policy for factory buildings.

e. Cost of boxes used in storing and shipping lawn mowers.

f. Filter for spray gun used to paint the lawn mowers.

g. Payroll taxes on hourly assembly-line employees.

h. Rivets, bolts, and other fasteners used in lawn mowers.

i. Cash paid to outside firm for janitorial services for factory.

j. Engine oil used in mower engines prior to shipment.

k. Attorney fees for drafting a new lease for headquarters offices.

l. Maintenance costs for new factory robotics equipment, based upon hours of usage.

m. Straight-line depreciation on the robotics machinery used to manufacture the lawn mowers. n. License fees for use of patent for lawn mower blade, based upon the number of lawn mowers produced.

o. Hourly wages of operators of robotics machinery used in production.

p. Salary of vice-president of marketing.

q. Property taxes on the factory building and equipment.

r. Factory cafeteria cashier's wages.

s. Electricity used to run the robotics machinery.

t. Commissions paid to sales representatives, based upon the number of lawn mowers sold.

u. Steel used in producing the lawn mowers.

v. Lawn mower throttle controls.

w. Telephone charges for controller's office.

x. Salary of quality control supervisor who inspects each lawn mower before it is shipped.

y. Plastic for outside housing of lawn mowers.

z. Cost of advertising in a national magazine.

Instructions

Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an "X" in the appropriate column.

Product CostsPeriod Costs

Direct Materials Direct Labor Factory Selling Admin.

CostCost Overhead CostExpense Expense