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The following is a list of costs that were incurred in producing a textbook. Please indicate whether each cost is: (a) a product or period
The following is a list of costs that were incurred in producing a textbook. Please indicate whether
each cost is:
(a) a product or period cost, and
(b) if it is a product cost, whether it is a direct material, direct labor, or factory overhead cost.
- Insurance on the factory building and equipment
- Salary of the vice president of finance
- Hourly wages of printing press operators during production
- Straight-line depreciation on the printing presses used to manufacture the textbook
- Straight-line depreciation on the office building
- Electricity used to run the presses during the printing of the textbook
- Sales commissions paid to textbook representatives for each textbook sold
- Paper on which the textbook is printed
- Book covers used to bind the pages
- Salaries of staff used to develop artwork for the textbook
- The glue used to bind pages to cover
- Salary of quality control supervisor who inspects each textbook before it is shipped
- Plant managers salary
- Maintenance supplies
- Property taxes on the headquarters building
- Factory supervisors salaries
- Travel costs of marketing executives to an annual sales meeting
- Supplies used by the Accounting Department in preparing various managerial reports
- Fees paid to lawn service for office grounds upkeep
- Cost for marketing at a national conference
- Attorney fees for drafting a new lease for headquarters offices
- License fees for use of the patent for the printing press, based on number of textbooks produce
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