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Classifying Costs The following is a list of costs that were incurred in the production and sale of lawn mowers. Classify each cost as either
Classifying Costs
The following is a list of costs that were incurred in the production and sale of lawn mowers. Classify each cost as either a product cost or a 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.
g. Hourly wages of operators of robotic machinery used in production | |
h. Engine oil used in mower engines prior to shipment | |
i. Salary of vice president of marketing | |
j. Property taxes on the factory building and equipment | |
k. Cost of advertising in a national magazine | |
l. Gasoline engines installed in the lawn mowers | |
m. Electricity used to run the robotic machinery | |
n. Straight-line depreciation on the robotic machinery used to manufacture the lawn mowers | |
o. Salary of quality control supervisor who inspects each lawn mower before it is shipped | |
p. Attorney fees for drafting a new lease for headquarters offices | |
q. Payroll taxes on hourly assembly line employees | |
r. Telephone charges for company controller's office | |
s. Steering wheels for lawn mowers | |
t. Factory cafeteria cashiers wages | |
u. Cash paid to outside firm for janitorial services for factory | |
v. Maintenance costs for new robotic factory equipment, based on hours of usage | |
w. Cost of boxes used in packaging lawn mowers, which are a significant portion of the total product cost | |
x. License fees for use of patent for lawn mower blade, based on the number of lawn mowers produced | |
y. Steel used in producing the lawn mowers | |
z. Commissions paid to sales representatives, based on the number of lawn mowers sold |
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