Lawlor, Inc. is the manufacturer of lawn care equipment. The company incurs the following costs while manufacturing weed trimmers: 0 (Click the icon to View the costs.) Requirement 1. Describe the difference between period costs and product costs. 2. Classify Lawlor's costs as period costs or product costs. If the costs are product costs, further classify as direct materials, direct labor, or manufacturing overhead. Requirement 1. Describe the difference between period costs and product costs. V are operating costs that are expensed in the accounting period in which they are incurred. V are all costs of a product that V requires companies to treat as an asset for external nancial reporting. These costs are recorded as an asset (inventory) on the balance sheet until the asset is sold. The cost is then transferred to an expense account ( V ) on the income statement. More info - Shaft and handle of weed trimmer - Motor of weed trimmer - Factory labor for workers assembling weed trimmers - Nylon thread used by the weed trimmer (not traced to the product) - Glue to hold the housing together - Plant janitorial wages - Depreciation on factory equipment - Rent on plant - Sales commissions - Administrative salaries - Plant utilities - Shipping costs to deliver nished weed trimmers to customers On the income statement, V is subtracted from V to determine gross prot. The V are then subtracted to determine operating income. Requirement 2. Classify Lawlor's costs as period costs or product costs. If the costs are product costs, further classify as direct materials, direct labor, or manufacturing overhead. Shaft and handle of weed trimmer Motor of weed trimmer Factory labor for workers assembling weed trimmers Nylon thread used by the weed trimmer (not traced to the product) Glue to hold the housing together Plant janitorial wages Depreciation on factoryr equipment Factory labor for workers assembling weed trimmers Nylon thread used by the weed trimmer (not traced to the product) Glue to hold the housing together Plant janitorial wages Depreciation on factory equipment Rent on plant Sales commissions Administrative salaries Plant utilities Shipping costs to deliver finished weed trimmers to customers \f1e Period costs Product costs - direct labor Product costs - direct materials Product costs - manufacturing overhead