Question

Problem 1 (Textbook Reference: P2-1) -Classify costs Total Block, Inc. is considering a new sunscreen packet that contains a skin wipe with sunscreen on it. These would be particularly useful for people who do not want to carry a bottle of sunscreen, according to Sunspot's marketing manager Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative. Use the second column in the table provided below to classify costs. Problem 2 (Textbook Reference: P2-2)-Classify items as product or period costs Classify the costs listed in Problem 2 as cither product costs or period costs. Use the third column in the table provided below a. President's salary b. Packages used to hold the skin Cleaning materials used to clean the skin wi Wages of workers who package the product Cost of advertising the product c. d. e. f. g. h. i. The salary of the supervisor of the worker who package the prod Cost accountant's salary (the accountant works in the factor Cost of a market research survey Sales commissions paid as a ercent of sales Depreciation of administrative office build j.

Answer 1

	P2-1 Cost Classification	P2-2 Product/Period cost
a. President's salary	Administrative Cost	Period Cost
b. Packages used to hold the skin wipes.	Direct Material	Product Cost
c.Cleaning materials used to clean the skin wipe packages	Manufacturing overhead	Product Cost
d. Wages of workers who package the product.	Direct Labor	Product Cost
e. Cost of advertising the product	Selling	Period Cost
f. The salary of the supervisor of the workers who package the product.	Manufacturing overhead	Product Cost
g. Cost accountant's salary (the accountant works in the factory)	Manufacturing overhead	Product Cost
h. Cost of a market research survey.	Selling	Period Cost
i. Sales commissions paid as a percent of sales	Selling	Period Cost
j. Depreciation of administrative office building.	Administrative Cost	Period Cost