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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 of the costs
Classifying Costs
The following is a list of costs that were incurred in the production and sale of lawn mowers. Classify each of the costs 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.
Costs | Classification |
a. Premiums on insurance policy for factory buildings | |
b. Tires for lawn mowers | |
c. Filter for spray gun used to paint the lawn mowers | |
d. Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final product | |
e. Plastic for outside housing of lawn mowers | |
f. Salary of factory supervisor | |
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 used for 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 | |
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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