Question
Classifying costs as product or period costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost
Classifying costs as product or period costs For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost (Direct Material; Direct Labor; Factory Overhead Cost) or a period cost: (Selling Expense; Administrative Expense)
A. Research and development costs
B. Depreciation on sewing machines.
C. Fabric used during production.
D. Depreciation on office equipment
E. Advertising expenses
F. Repairs and maintenance costs for sewing machines.
G. Salary of production quality control supervisor
H. Utility costs for office building I. Sales commissions
J. Salaries of distribution center personnel
K. Wages of sewing machine operators.
L. Factory janitorial supplies
M. Chief financial officer's salary
N. Travel costs of media relations employees
O. Factory supervisors' salaries
P. Oil used to lubricate sewing machines.
Instructions Classify each of the preceding costs as a 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. Use the following tabular headings for preparing your answer, placing an "X" in the appropriate column:
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