Question 1

10 MARKS

Ashland Company, a maker of kitchen cabinets, incurred the following costs during the current year:

Required: Classify each cost as either a product or period cost.

Product Period

1. Depreciation on automobiles used sales staff. 2.Salary of Ashland's chief executive officer 3.Glue used in the production process 4.Supplies for factory washroom 5.Research and development costs 6.Property taxes on factory building 7.Salary of company controller 8.Depreciation on furniture in factory lunchroom 9.Cost of lubricating machinery 10.Wood used in production process