Classify each of the following costs???
9:021 D v2.cengagenow.com Chapter 15 O Classifying Costs The following is a list of costs incurred by several manufacturing companies: Classify each of the following costs as product cost or 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: Costs Classification a. Annual picnic for plant employees and their families Product costs-direct materials Cost of fabric used by clothing manufacturer Product costs-factory overhead c. Cost of plastic for a toy manufacturer Product costs-direct labor c d. Cost of sewing machine needles used by a shirt manufacturer Period costs-administrative ex e. Cost of television commercials Product costs-direct labor c f. Depreciation of copying machines used by the Marketing Product costs-direct labor c Department g. Depreciation of microcomputers used in the factory to Product costs-factory overhead coordinate and monitor the production schedules h. Depreciation of office building Product costs-direct materials i. Depreciation of robotic equipment used to assemble a product Product costs-factory overhead j. Electricity used to operate factory machinery Period costs-administrative ex k. Factory janitorial supplies Product costs-direct materials I. Fees charged by collection agency on past-due customer Product costs-factory overhead accounts m. Fees paid to lawn service for office grounds Product costs-direct labor c n. Maintenance costs for factory equipment Period costs-administrative ex o. Oil lubricants for factory plant and equipment Product costs-direct labor c p. Pens, paper, and other supplies used by the Accounting Period costs-selling expens Department q. Repair costs for factory equipment Product costs-direct labor c r. Rent for a warehouse used to store work in process and finished Product costs-direct materials products s. Salary of a physical therapist who treats plant employees Product costs-direct labor c t. Salary of the manager of a manufacturing plant Period costs-administrative ex u. Telephone charges by corporate office Period costs-administrative ex v. Travel costs of marketing executives to annual sales meeting Product costs-factory overhead w. Wages of a machine operator on the production line Period costs-administrative ex x. Wages of production quality control personnel Product costs-direct labor c Feedback Check My Work a-x. Product costs are costs associated with the product. Period costs are selling and administrative expenses. Direct materials are the costs of any material integral to the finished product. Employee wages integral to the finished product are direct labor. Factory overhead costs are manufacturing costs that are neither direct materials nor direct labor. + 3
