The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 55,000 Depreciation expense—Office equipment 34,000 Depreciation expense—Selling equipment 35,000 Depreciation expense—Factory equipment 77,000 Raw materials purchases (all direct materials) 870,000 Maintenance expense—Factory equipment 44,100 Factory utilities 38,400 Direct labor 508,000 Indirect labor 76,000 Office salaries expense 46,000 Rent expense—Office space 28,000 Rent expense—Selling space 67,000 Rent expense—Factory building 161,000 Sales salaries expense 386,000 Required: Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. Note: Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or period cost.

The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 55,000 Depreciation expense—Office equipment 34,000 Depreciation expense—Selling equipment 35,000 Depreciation expense—Factory equipment 77,000 Raw materials purchases (all direct materials) 870,000 Maintenance expense—Factory equipment 44,100 Factory utilities 38,400 Direct labor 508,000 Indirect labor 76,000 Office salaries expense 46,000 Rent expense—Office space 28,000 Rent expense—Selling space 67,000 Rent expense—Factory building 161,000 Sales salaries expense 386,000 Required: Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. Note: Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or period cost.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 14P: An examination of Buckhorn Fabricators records reveals the following transactions: a. On December...

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