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First, classity each cost as (A) product or (B) period. If a product cost, then identify as (C) direct material, (D) direct labor, or (E)
First, classity each cost as (A) product or (B) period. If a product cost, then identify as (C) direct material, (D) direct labor, or (E) manufacturing overhead. If a period cost, then identify as ( selling, (Gj administrative, or (H) warehouse. Remember: Direct materials, direct labor, and manufacturing overhead costs are product costs. Administrative, selling and warehouse expenses are period costs. (Warehouse expenses are classified as selling if the company doesn't categorize them separately.) Product costs are carried as inventory on the balance sheet until sold when they become expense, Period costs are expensed during period incurred and reported on the income statement. Select the correct cost classifications for each multiple-answer question. There are two correct answers for each question 1. Rubber that becomes part of product 2 Labor that touches product to make product 3. Labor operating machine that makes product 4. Screws that become part of product, too small to track 5. Electricity used at factory 6. Property taxes on corporate headquarters 7. Wages of those who handle inventory 8. Quality inspector salaries 9. Depreciation on salespersons' automobiles 10. Accounting office personnel at corporate office 11. Product design salaries at corporate headquarters 12 Plant management salaries 13. Janitor wages at manufacturing facility 14. Cost to ship to customers 15. Cost of tracking inventory in warehouse 16. Advertising expenses 17. Insurance on manufacturing plant 18. Wages for those who pack individual products 19. Equipment maintenance at factory 20. Wire used in products, a traceable part First, classify each cost as (A) product or (B) period. If a product cost, then identify as (C) direct material, (D) direct labor, or (E) manufacturing overhead. If a period cost, then identify as (F) selling. (G) administrative, or (H) warehouse. Remember. Direct materials, direct labor, and manufacturing overhead costs are product costs. Administrative, selling, and warehouse expenses are period costs. ( Warehouse expenses are classified as selling if the company doesn't categorize them separately.) Product costs are carried as inventory on the balance sheet until sold when they become expense. Period costs are expensed during period incurred and reported on the income statement. Select the correct cost classifications for each multiple answer question. There are two correct answers for each
First, classity each cost as (A) product or (B) period. If a product cost, then identify as (C) direct material, (D) direct labor, or (E) manufacturing overhead. If a period cost, then identify as ( selling, (Gj administrative, or (H) warehouse. Remember: Direct materials, direct labor, and manufacturing overhead costs are product costs. Administrative, selling and warehouse expenses are period costs. (Warehouse expenses are classified as selling if the company doesn't categorize them separately.) Product costs are carried as inventory on the balance sheet until sold when they become expense, Period costs are expensed during period incurred and reported on the income statement. Select the correct cost classifications for each multiple-answer question. There are two correct answers for each question
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