Classifying Costs

The following is a list of costs that were incurred in the production and sale of lawn mowers.

1. Salary of factory supervisor.

2. Steel used in producing the lawn mowers.

3. Commissions paid to lawn mower sales representatives. 4. Property taxes on the factory building and equipment. 5. Hourly wages of operators of machinery used in producing the lawn mowers.

6. Telephone charges for the company's accounting department.

7. Plastic for outside housing on the lawn mowers during production.

8. Electricity used in the production of the lawn mowers. 9. Wages of janitorial staff in the factory.

10. Filter for spray gun used to paint the lawn mowers during production.

REQUIRED:

1. Classify each cost as either a product cost or a period cost. If you classify the cost as a product cost, then identify whether it is a direct materials cost, direct labor cost, or a manufacturing overhead cost. If you classify the cost as a period cost, thenidentify whether it is a selling expense or administrative expense.

USE THE FORMAT BELOW.

The first two expenditures listed are given as an example.

a. Cost of advertising in a national magazine.

b. Paint used to coat the lawn movers during production.

1. salary of factory supervisor
2. steel used in producing the lawn mowers
3. commissions paid to lawn mower sales rep
4. property taxes on the factory building and equipment
5. Hourly wages of operators of machinery used in producing the lawn mower
6. Telephone charge for the company accounting department
7. Plastic for outside housing on the lawn mower durning production
8. Electricity used in the production of the lawn mower
9. wages of janitorial staff in the factory
10. filter for spray gun used to paint lawn mowers