Answer
1. Depreciation on salespersons’ cars. PERIOD COST
2. Rent on equipment used in the factory. PRODUCT COST
3. Lubricants used for machine maintenance. PRODUCT COST
4. Salaries of personnel who work in the finished goods warehouse. PERIOD COST
5. Soap and paper towels used by factory workers at the end of a shift. PRODUCT COST
6. Factory supervisors’ salaries. PRODUCT COST
7. Heat, water, and power consumed in the factory. PRODUCT COST
8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) PERIOD COST
9. Advertising costs. PERIOD COST
10. Workers’ compensation insurance for factory employees. PRODUCT COST
11. Depreciation on chairs and tables in the factory lunchroom. PRODUCT COST
12. The wages of the receptionist in the administrative offices. PERIOD COST
13. Cost of leasing the corporate jet used by the company’s executives. PERIOD COST
14. The cost of renting rooms at a Florida resort for the annual sales conference. PERIOD COST
15. The cost of packaging the company’s product. PRODUCT COST
Work Step by Step
As given above
