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Quality Footwear incurs these costs for the month: Production wages $ 6 200 Advertising costs $ 800 Leather material used $ 8 000 Research costs
Quality Footwear incurs these costs for the month:
Production wages $ 6 200
Advertising costs $ 800
Leather material used $ 8 000
Research costs $ 4 000
Depreciation on factory equipment $ 1 000
Factory cleaners wages $ 860
Repairs and maintenance on office building $ 2 500
Glue and pins $ 400
Required:
Determine each of the following costs: (list the costs under each cost category when calculating the answer).
1. Product costs
2. Period Costs
3. Explain why costs are classified into various cost categories, and who benefits from it?
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