Question
Cost analysis and identification Georgia Pacific, a manufacturer, incurs the following costs. 1. Indicate each cost as either a product or a period cost. If
Cost analysis and identification
Georgia Pacific, a manufacturer, incurs the following costs.
1.
Indicate each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead. If a product cost, classify it as prime or conversion. Select "None" if none of the categories and "both" if both the categories applied for the particular item, For period cost select "Applicable" if a category applies and "Not applicable" if it does not apply. Leave no cells blank. |
Product Cost | Period Cost | |||
Cost | Prime | Conversion | ||
1. | Factory utilities | |||
2. | Advertising | |||
3. | Amortization of patents on factory machine | |||
4. | State and federal income taxes | |||
5. | Office supplies used | |||
6. | Bad debts expense | |||
7. | Small tools used | |||
8. | Payroll taxes for production supervisor | |||
9. | Accident insurance on factory workers | |||
10. | Depreciation Factory building | |||
11. | Wages to assembly workers | |||
12. | Direct materials used |
2.
Indicate each product cost as either a direct cost or an indirect cost using the product as the cost object. (Select "None" if none of the categories and "both" if both the categories applied for the particular item.) |
Cost | ||
1. | Factory utilities | |
2. | Advertising | |
3. | Amortization of patents on factory machine | |
4. | State and federal income taxes | |
5. | Office supplies used | |
6. | Bad debts expense | |
7. | Small tools used | |
8. | Payroll taxes for production supervisor | |
9. | Accident insurance on factory workers | |
10. | Depreciation Factory building | |
11. | Wages to assembly workers | |
12. | Direct materials used |
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