50.1K

Verified Solution

Link Copied!

8.) The following is a list of costs that were incurred in producing your accounting textbook:
a. Insurance on the factory building and equipment
b. Salary of the vice president of finance
c. Hourly wages of printing press operators during production
d. Straight-line depreciation on the printing presses used to manufacture the text
e. Electricity used to run the presses during the printing of the text
f. Glue used to bind pages to cover
g. Sales commissions paid to textbook representatives for each text sold
h. Cardboard which is used as book covers
i. Straight-line depreciation on an office building
j. Salaries of staff used to develop artwork for the text
k. Paper on which the text is printed
INSTRUCTIONS:
Classify each cost as only one of the three product costs, OR one of the two period costs.
Indicate your choice by placing an 'x' in the appropriate box, only ONE 'x' per row.								(11 points)
	PRODUCT COST				PERIOD COST
	Direct Material	Direct Labor	Overhead		Selling	Administrative
Cost	Cost	Cost	Cost		Expense	Expense
a
b
c
d
e
f
g
h
i
j
k

Answer & Explanation Solved by verified expert

See Answer