Question

The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor Miscellaneous production costs office salaries expense Rav materials purchases Rent expense-office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment Sales Sales salaries expense 31,750 8,500 10,300 33,950 108,660 10,350 34,200 729,000 62,800 10,225 72,350 957,500 25,200 29,100 78,000 35,700 4,562,500 403,760 "Assume that the raw materials inventory account is used only for direct materials. Indirect materials are recorded in a factory supplies account. Required: Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead and each of the period costs as either selling or general and administrative expenses. (Leave no cell blank.)

Answer 1

Answer: S.No Costs 1 Advertising expense 2 Depreciation expense-Office equipment 3 Depreciation expense-Selling equipment 4 Depreciation expense Factory equipment Factory supervision 6 Factory supplies used Factory utilities 8 Direct labor 9 Indirect labor 10 Miscellaneous production costs 11 Office salaries expense 12 Raw materials purchases 13 Rent expense-Office space 14 Rent expense-Selling space 15 |Rent expenseFactory building 16 Maintenance expenseFactory equipment 17 Sales 18 Sales salaries expense Product Cost Type of Product Cost Type of Period Cost or Period Cost Period cost NA- Not a product cost Selling expenses Period cost NA- Not a product cost General and Administrative expenses Period cost NA - Not a product cost Selling expenses Product cost Factory Overhead NA - Not a period cost Product cost Factory Overhead NA - Not a period cost Product cost Factory Overhead NA - Not a period cost Product cost Factory Overhead NA - Not a period cost Product cost Direct Labor NA - Not a period cost Product cost Factory Overhead NA - Not a period cost Product cost NA - Not a period cost Period cost NA - Not a product cost General and Administrative expenses Product cost Direct Materials NA - Not a period cost Period cost NA - Not a product cost General and Administrative expenses Period cost NA - Not a product cost Selling expenses Product cost Factory Overhead NA - Not a period cost Product cost Factory Overhead NA - Not a period cost Neither NA - Not a product cost NA - Not a period cost Period cost NA - Not a product cost Selling expenses NA- Not