Question
Balls, Hoops, and Bats, Inc., a producer of sports equipment, incurs the following types of costs: a. Depreciation on the production plant b. Depreciation on
Balls, Hoops, and Bats, Inc., a producer of sports equipment, incurs the following types of costs: a. Depreciation on the production plant b. Depreciation on the corporate offices c. Wages of production-line employees d. Paper, toner, and miscellaneous supplies for the office copy machines e. Raw materials used in the production of sports equipment f. Wages of the corporate headquarters' secretarial staff g. Maintenance costs on the production equipment h. Advertising costs i. Shipping costs for products sold j. Salaries of plant supervisors k. Interest on bank loans l. Property tax on the production plant m. Property tax on the corporate offices n. Commissions paid to sales personnel o. Administrative salaries of corporate executives Classify each cost as a period cost or a product cost. For each item classified as a product cost, indicate whether it would usually be included in direct materials, direct labor, or manufacturing overhead.
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