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Classifying Costs The following is a list of costs that were incurred in the production and sale of boats: Classify each cost as either a

Classifying Costs

The following is a list of costs that were incurred in the production and sale of boats:

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.

Costs Classification

a. Memberships for key executives in the Bass World Association. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 1

b. Cost of electrical wiring for boats. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 2

c. Wood paneling for use in interior boat trim. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 3

d. Annual bonus paid to top executives of the company. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 4

e. Legal department costs for the year. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 5

f. Salary of shop supervisor. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 6

g. Salary of president of company. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 7

h. Fiberglass for producing the boat hull. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 8

i. Cost of normal scrap from defective hulls. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 9

j. Oil to lubricate factory equipment. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 10

k. Special advertising campaign in Bass World. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 11

l. Masks for use by sanders in smoothing boat hulls. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 12

m. Hourly wages of assembly line workers. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 13

n. Decals for boat hull, the cost of which is immaterial to the cost of the final product. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 14

o. Salary of chief financial officer. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 15

p. Power used by sanding equipment. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 16

q. Straight-line depreciation on factory equipment. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 17

r. Cost of boat for "grand prize" promotion in local bass tournament. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 18

s. Canvas top for boats. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 19

t. Commissions to sales representatives, based upon the number of boats sold. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 20

u. Yearly cost of the maintenance contract for robotic equipment. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 21

v. Steering wheels. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 22

w. Cost of metal hardware for boats, such as ornaments and tie-down grasps. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 23

x. Boat chairs. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 24

y. Annual fee to pro-fisherman Bill Tennessee to promote the boats. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 25

z. Cost of paving the headquarters employee parking lot. SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 26

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Costs	Classification
a. Memberships for key executives in the Bass World Association.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 1
b. Cost of electrical wiring for boats.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 2
c. Wood paneling for use in interior boat trim.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 3
d. Annual bonus paid to top executives of the company.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 4
e. Legal department costs for the year.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 5
f. Salary of shop supervisor.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 6
g. Salary of president of company.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 7
h. Fiberglass for producing the boat hull.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 8
i. Cost of normal scrap from defective hulls.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 9
j. Oil to lubricate factory equipment.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 10
k. Special advertising campaign in Bass World.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 11
l. Masks for use by sanders in smoothing boat hulls.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 12
m. Hourly wages of assembly line workers.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 13
n. Decals for boat hull, the cost of which is immaterial to the cost of the final product.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 14
o. Salary of chief financial officer.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 15
p. Power used by sanding equipment.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 16
q. Straight-line depreciation on factory equipment.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 17
r. Cost of boat for "grand prize" promotion in local bass tournament.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 18
s. Canvas top for boats.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 19
t. Commissions to sales representatives, based upon the number of boats sold.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 20
u. Yearly cost of the maintenance contract for robotic equipment.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 21
v. Steering wheels.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 22
w. Cost of metal hardware for boats, such as ornaments and tie-down grasps.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 23
x. Boat chairs.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 24
y. Annual fee to pro-fisherman Bill Tennessee to promote the boats.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 25
z. Cost of paving the headquarters employee parking lot.	SelectProduct costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expenseItem 26