Question

18-2A Classifying costs LO C2, C3 31, 2017 Depreciation 9,090 109,24เอ 7,356 Factory utilitles 741,000 Misce1laneous production costs 935.000 7,000 1,100 Meintenance expense-factory equipsent 4,712.504 e expenses (Leave no cell blank.)

Answer 1

Answers

Requirements		Product or Period Cost	Type of Product Cost	Type of Period Cost
1	Advertising expense	Period Cost		Selling Expenses
2	Depreciation expense - OE	Period Cost		General and Administrative expenses
3	Depreciation expense - SE	Period Cost		Selling Expenses
4	Depreciation expense - FE	Product Cost	Factory Overhead
5	Factory Supervision	Product Cost	Factory Overhead
6	Factory Supplies used	Product Cost	Factory Overhead
7	Factory utilities	Product Cost	Factory Overhead
8	Direct labor	Product Cost	Direct labor
9	Indirect labor	Product Cost	Factory Overhead
10	Miscellaneous product costs	Product Cost	Factory Overhead
11	Office Salaries expense	Period Cost		General and Administrative expenses
12	RM purchases	Product Cost	Direct Material
13	Rent Expenses - OS	Period Cost		General and Administrative expenses
14	Rent Expenses - SS	Period Cost		Selling Expenses
15	Rent Expenses - FB	Product Cost	Factory Overhead
16	Maintenance Expense Factory Equipment	Product Cost	Factory Overhead
17	Sales [See note below]	Period Cost		Selling Expenses
18	Sales Salaries Expense	Period Cost		Selling Expenses

• Note regarding #17 Sales.
  Sales is not a COST. However since the same is present under ‘Cost’, it has been assumed to be Sales Cost, or Sales expenses and treated accordingly.