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Need help with the following accounting problem Problem 18-2A Classifying costs LO C2, C3 The following calendar year-end information is taken from the December 31,
Need help with the following accounting problem
Problem 18-2A Classifying costs LO C2, C3 The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-of fice equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor 30,250 7,250 11,900 33,750 103,860 7,600 37,800 747,000 Indirect 1abor 73,400 9,100 63,550 977,500 29,400 30,600 77,200 38,400 4,612,500 406,160 Miscellaneous production costs Office salaries expense Raw materials purchases Rent expense-office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense Assume that the raw materials inventory account is used only for direct materials. Indirect materials are recorded in a factory supplies account Required: Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead and each of the period costs as either selling or general and administrative expenses. (Leave no cell blank.) Product Cost or Period Cost Type of Period Cost Costs Type of Product Cost 1. Advertising expense 2. Depreciation expense-Office equipment 3. Depreciation expense-Selling equipment 4. Depreciation expense-Factory equipment 5. Factory supervision 6. Factory supplies used 7. Factory utilities 8. Direct labor 9.Indirect labor 10. Miscellaneous production costs 11. Office salaries expense 12. Raw materials purchases 13. Rent expense-Office space 14. Rent expense-Selling space 15. Rent expense Factory building 16. Maintenane expense-Factory equipment 17. Sales 18. Sales salaries expenseStep by Step Solution
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