InstructionsClassify each cost as either a product cost or a 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 expense. Use the following tabular headings for your answer, placing an “X” in the appropriate column: Production Cost Period CostCostDirect Materials CostDirect Labor CostsFactory Overhead Cost Selling ExpenseAdministrative Expense The following is a list of costs that were incurred in the production and sale of lawn mowers:Attorney fees for drafting a new lease for headquarter officesCash paid to outside firm for janitorial services for factoryCommissions paid to sales representatives, based on the number of lawn mowers sold.Cost of advertising in a national magazineCost of boxes used in packaging lawn mowersElectricity used to run the robotic machineryEngine oil used in mower engines prior to shipmentFactory cafeteria employees’ wagesFilter for spray gun used to paint the lawn mowersGasoline engines used for lawn mowersHourly wages of operators of robotic machinery used in productionLicense fees for use of patent for lawn mower blade, based on the number of lawn mowers producedMaintenance costs for new robotic factory equipment, based on hours of usagePaint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final productPayroll taxes on hourly assembly line employeesPlastic for outside housing of lawn mowersPremiums on insurance policy for factory buildingsProperty taxes on the factory building and equipmentSalary of factory supervisorSalary of quality control supervisor who inspects each lawn mower before it is shippedSalary of vice president of marketingSteel used in producing the lawn mowersSteering wheels for lawn mowersStraight-line depreciation on the robotic machinery used to manufacture the lawn mowersTelephone charges for company controller’s officeTires for lawn mowers

Direct Material Cost : The material cost require for production of goods. Direct Labor Cost :- The…

Answered: Classify each cost as either a product…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Instructions

Classify each cost as either a product cost or a 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 expense. Use the following tabular headings for your answer, placing an “X” in the appropriate column:

Production Cost

Period Cost

Cost	Direct Materials Cost	Direct Labor Costs	Factory Overhead Cost		Selling Expense	Administrative Expense

The following is a list of costs that were incurred in the production and sale of lawn mowers:

Attorney fees for drafting a new lease for headquarter offices
Cash paid to outside firm for janitorial services for factory
Commissions paid to sales representatives, based on the number of lawn mowers sold.
Cost of advertising in a national magazine
Cost of boxes used in packaging lawn mowers
Electricity used to run the robotic machinery
Engine oil used in mower engines prior to shipment
Factory cafeteria employees’ wages
Filter for spray gun used to paint the lawn mowers
Gasoline engines used for lawn mowers
Hourly wages of operators of robotic machinery used in production
License fees for use of patent for lawn mower blade, based on the number of lawn mowers produced
Maintenance costs for new robotic factory equipment, based on hours of usage
Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final product
Payroll taxes on hourly assembly line employees
Plastic for outside housing of lawn mowers
Premiums on insurance policy for factory buildings
Property taxes on the factory building and equipment
Salary of factory supervisor
Salary of quality control supervisor who inspects each lawn mower before it is shipped
Salary of vice president of marketing
Steel used in producing the lawn mowers
Steering wheels for lawn mowers
Straight-line depreciation on the robotic machinery used to manufacture the lawn mowers
Telephone charges for company controller’s office
Tires for lawn mowers

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