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8.) The following is a list of costs that were incurred in producing your accounting textbook: a. Insurance on the factory building and equipment b.
| 8.) The following is a list of costs that were incurred in producing your accounting textbook: | |||||||||
| a. Insurance on the factory building and equipment | |||||||||
| b. Salary of the vice president of finance | |||||||||
| c. Hourly wages of printing press operators during production | |||||||||
| d. Straight-line depreciation on the printing presses used to manufacture the text | |||||||||
| e. Electricity used to run the presses during the printing of the text | |||||||||
| f. Glue used to bind pages to cover | |||||||||
| g. Sales commissions paid to textbook representatives for each text sold | |||||||||
| h. Cardboard which is used as book covers | |||||||||
| i. Straight-line depreciation on an office building | |||||||||
| j. Salaries of staff used to develop artwork for the text | |||||||||
| k. Paper on which the text is printed | |||||||||
| INSTRUCTIONS: | |||||||||
| Classify each cost as only one of the three product costs, OR one of the two period costs. | |||||||||
| Indicate your choice by placing an 'x' in the appropriate box, only ONE 'x' per row. | (11 points) | ||||||||
| PRODUCT COST | PERIOD COST | ||||||||
| Direct Material | Direct Labor | Overhead | Selling | Administrative | |||||
| Cost | Cost | Cost | Cost | Expense | Expense | ||||
| a | |||||||||
| b | |||||||||
| c | |||||||||
| d | |||||||||
| e | |||||||||
| f | |||||||||
| g | |||||||||
| h | |||||||||
| i | |||||||||
| j | |||||||||
| k | |||||||||
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