Problem 1. The following costs were incurred by a baseball glove manufacturer for the month of April.

1. Leather used to make a baseball glove - $15,000
2. Cost of endorsement from a professional baseball player - $1,000
3. Office supplies used at the company headquarters - $1,200
4. Ink used to print a player's autograph on the baseball glove - $400
5. Salary of the vice president of the company - $3,000

Analyze the above costs and compute for the following:

1. Direct materials
2. Direct labor
3. Factory overhead
4. Prime costs
5. Conversion costs
6. Product costs
7. Period costs

Problem 2. The following costs were incurred in producing a textbook:

1. Insurance on the factory building and equipment - P30,000
2. Salary of the vice president of finance - P120,000
3. Hourly wages of printing press operators during production - P100,000
4. Straight-line depreciation on the printing presses used to manufacture the text - P3,000
5. Electricity used to run the presses during the printing of the text - P6,500
6. Sales commissions paid to textbook representatives for each text sold - P60,000
7. Paper on which the text is printed - P85,000
8. Book covers used to bind the pages - P12,000
9. Straight-line depreciation on an office building - P4,000
10. Salaries of staff used to develop artwork for the text - P24,000
11. Glue used to bind pages to cover - P20,000

Analyze the above costs and compute for the following:

1. Product costs
2. Period costs
3. Direct materials
4. Direct labor
5. Factory overhead
6. Selling expenses
7. Administrative expenses