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The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. Indicate whether
The following is a list of costs incurred by several businesses.
Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense:
Costs | Classification |
a. Cost of fabric used by clothing manufacturer | |
b. Maintenance and repair costs for factory equipment | |
c. Rent for a warehouse used to store raw materials and work in process | |
d. Wages of production quality control personnel | |
e. Oil lubricants for factory plant and equipment | |
f. Depreciation of robot used to assemble a product | |
g. Travel costs of marketing executives to annual sales meeting | |
h. Depreciation of copying machines used by the Marketing Department | |
i. Fees charged by collection agency on past-due customer accounts | |
j. Electricity used to operate factory machinery | |
k. Maintenance costs for factory equipment | |
l. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reports | |
m. Charitable contribution to United Fund | |
n. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules | |
o. Fees paid to lawn service for office grounds upkeep | |
p. Cost of sewing machine needles used by a shirt manufacturer | |
q. Cost of plastic for a telephone being manufactured | |
r. Telephone charges by presidents office | |
s. Cost of 30-second television commercial | |
t. Surgeons fee for heart bypass surgery | |
u. Depreciation of tools used in production | |
v. Wages of a machine operator on the production line | |
w. Salary of the vice president of manufacturing operations | |
x. Factory janitorial supplies |
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