nces Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for 1. Depreciation on salespersons' cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. Costs 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors' salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) 9. Advertising costs. 10. Workers' compensation insurance for factory employees. 11. Depreciation on chairs and tables in the factory lunchroom. 12. The wages of the receptionist in the administrative offices. 13. Cost of leasing the corporate jet used by the company's executives. 14. The cost of renting rooms at a Florida resort for the annual sales conference. 15. The cost of packaging the company's product. Product Cost / Period Cost
nces Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for 1. Depreciation on salespersons' cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. Costs 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors' salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) 9. Advertising costs. 10. Workers' compensation insurance for factory employees. 11. Depreciation on chairs and tables in the factory lunchroom. 12. The wages of the receptionist in the administrative offices. 13. Cost of leasing the corporate jet used by the company's executives. 14. The cost of renting rooms at a Florida resort for the annual sales conference. 15. The cost of packaging the company's product. Product Cost / Period Cost
Chapter1: Financial Statements And Business Decisions
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1. Depreciation on salespersons' cars.
2. Rent on equipment used in the factory.
3. Lubricants used for machine maintenance.
4. Salaries of personnel who work in the finished goods warehouse.
5. Soap and paper towels used by factory workers at the end of a shift.
6. Factory supervisors' salaries.
7. Heat, water, and power consumed in the factory.
8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)
9. Advertising costs.
10. Workers' compensation insurance for factory employees.
11. Depreciation on chairs and tables in the factory lunchroom.
12. The wages of the receptionist in the administrative offices.
13. Cost of leasing the corporate jet used by the company's executives.
14. The cost of renting rooms at a Florida resort for the annual sales conference.
15. The cost of packaging the company's product.
FEB
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Required:
Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for
Costs
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Expert Solution
Step 1
PRODUCT COST
Product Cost are those Cost which is associates with the Manufacturing of Product.
Product Cost Includes Direct Material, Direct Labour, indirect Labour Cost, indirect Material, consumable production, supplies, Manufacturing OH etc.
PERIOD COST
Period Cost are those Cost which are not directly associates to the production process.
Period Cost Includes Selling Cost, Administrative Cost, Advertising, Depreciation on Sales Equipment, Sales Commission etc.
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