1 Determine if each
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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