Wu Cycles incurred the following costs while manufacturing its bicycles.

Instructions

a. Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.

b. Explain the basic difference in accounting for product costs and period costs.

Transcribed Image Text:

¥1,000,000 Advertising expense Property taxes on plant Delivery expense ¥450,000 Bicycle components Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used 600,000 140,000 75,000 210,000 1,100,000 130,000 Sales commissions 350,000 500,000 Salaries paid to sales clerks