z. Filter for spray gun useti tu Instructions Classify each cost as either a product cost or a period co uct cost is a direct materials cost, a direct labor cost, or a te whether each period cost is a selling expense or an administ following tabular headings for your answer, placing an "X"int cost. Indicate Product Costs Direct Labor Peri s Direct Materials Cost Factory Overhead Cost Selling Expense Cost Cost PR 18-2B Classifying costs The following is a list of costs incurred by several businesses: a. Factory operating supplies. b. Wages of company controller's secretary c. Entertainment expenses for sales representatives. d. Paper used by commercial printer. e. Hard drives for a microcomputer manufacturer. f. Lumber used by furniture manufacturer. g. Salary of quality control supervisor. h. Hourly wages of warehouse laborers. i. Sales commissions. j. Cost of hogs for meat processor. aper used by Computer Department in processing various managerial repais 1. Cost of telephone operators for a toll-free hotline to help customers operat m. Protective glasses for factory machine operators. n. Maintenance and repair costs for factory equipment o. Costs of operating a research laboratory p. Packing supplies for products sold. These supplies are a very k. P total cost of the product. q. Depreciation of factory equipment. Chapter 18 Managerial Accounting Concepts and Principles865 r. First-aid supplies for factory workers s. Seed for grain farmer. t Health insurance premiums paid for factory workers. u. Wages of a machine operator on the production line v. Tires for an automobile manufacturer. w. Executive bonus for vice president of marketing. x. Costs for television advertisement. Classify each of the preceding costs as a product cost or period cost. 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 ex- pense. Use the following tabular headings for preparing your answer. Place an X* in the appropriate column. Period Costs Product Costs Cost Materials Direct Labor Cost DirectLaborCoS Administrative Expense Selling Overhead Materials Cost o8J. 2 PR 18-3B A partial list of Swain Hotel's costs is provided below a. Pay-per-view movie rental costs (in rooms b. Training for hotel restaurant servers. c. Champagne for guests. d. Cost e. Cost to replace lobby furniture. Cost classifications-service company of laundering towels and bedding. Cost of advertising in local newspaper. mer suvey
