Problem 14-2A 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	$	28,750
Depreciation expenseOffice equipment		8,250
Depreciation expenseSelling equipment		9,900
Depreciation expenseFactory equipment		39,950
Factory supervision		108,360
Factory supplies used		8,850
Factory utilities		38,700
Direct labor		729,000
Indirect labor		74,400
Miscellaneous production costs		9,325
Office salaries expense		74,000
Raw materials purchases*		967,500
Rent expenseOffice space		24,400
Rent expenseSelling space		31,500
Rent expenseFactory building		82,800
Maintenance expenseFactory equipment		39,000
Sales		4,662,500
Sales salaries expense		410,160

*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.)

	Costs	Product Cost or Period Cost	Type of Product Cost	Type of Period Cost
1.	Advertising expense
2.	Depreciation expenseOffice equipment
3.	Depreciation expenseSelling equipment
4.	Depreciation expenseFactory 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 expenseOffice space
14.	Rent expenseSelling space
15.	Rent expenseFactory building
16.	Maintenance expenseFactory equipment
17.	Sales
18.	Sales salaries expense