Classifying Costs

The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. 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. Factory operating supplies.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 1
b. Wages of company controller's secretary.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 2
c. Entertainment expenses for sales representatives.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 3
d. Paper used by commercial printer.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 4
e. Hard drives for a microcomputer manufacturer.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 5
f. Lumber used by furniture manufacturer.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 6
g. Salary of quality control supervisor.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 7
h. Hourly wages of warehouse laborers.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 8
i. Sales commissions.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 9
j. Cost of hogs for meat processor.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 10
k. Paper used by Computer Department in processing various managerial reports.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 11
l. Cost of telephone operators for a toll-free hotline to help customers operate products.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 12
m. Protective glasses for factory machine operators.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 13
n. Maintenance and repair costs for factory equipment.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 14
o. Costs of operating a research laboratory.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 15
p. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 16
q. Depreciation of factory equipment.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 17
r. First-aid supplies for factory workers.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 18
s. Seed for grain farmer.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 19
t. Health insurance premiums paid for factory workers.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 20
u. Wages of a machine operator on the production line.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 21
v. Tires for an automobile manufacturer.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 22
w. Executive bonus for vice president of marketing.	Select Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expense Item 23
x. Costs for television advertisement.