1 Determine if each
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![1 Determine if each item is a period or product cost. Also determine whether the costs are
selling/administrative if a period cost, or direct/indirect if product cost. Period cost Product cost
Selling expense General and administrative expense Direct cost Indirect cost A. Paid $77,500 for
materials used for the product B. Paid sales commissions of $58,200. C. Paid $38,800 in salaries
for factory employees that make the product D. Paid $88,300 in salaries for executives (president
and vice presidents). E. Recorded depreciation 16,400 was depreciation on factory equipment F.
Recorded depreciationcost of 14,000 on the headquarters building where sales/admin are staffed
F. Paid $3,100 for various suppl](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7990f2e8-0f25-4202-8e8a-c933726a2ae8%2F777012a3-057c-4d48-9e7e-d70e73aac243%2Fcr64id4k_processed.png&w=3840&q=75)
Transcribed Image Text:1 Determine if each item is a period or product cost. Also determine whether the costs are
selling/administrative if a period cost, or direct/indirect if product cost. Period cost Product cost
Selling expense General and administrative expense Direct cost Indirect cost A. Paid $77,500 for
materials used for the product B. Paid sales commissions of $58,200. C. Paid $38,800 in salaries
for factory employees that make the product D. Paid $88,300 in salaries for executives (president
and vice presidents). E. Recorded depreciation 16,400 was depreciation on factory equipment F.
Recorded depreciationcost of 14,000 on the headquarters building where sales/admin are staffed
F. Paid $3,100 for various suppl
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