Question

The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Leone Company.
Advertising expense . . . . . . . . . . . . . . . . . . . . . . $ 28,750
Depreciation expense—Office equipment . . . . 7,250
Depreciation expense—Selling equipment . . . . 8,600
Depreciation expense—Factory equipment . . . 33,550
Factory supervision . . . . . . . . . . . . . . . . . . . . . . . 102,600
Factory supplies used . . . . . . . . . . . . . . . . . . . . . 7,350
Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . . 33,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675,480
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,875
Miscellaneous production costs . . . . . . . . . . . . $ 8,425
Office salaries expense . . . . . . . . . . . . . . . . . . . 63,000
Raw materials purchases . . . . . . . . . . . . . . . . . . 925,000
Rent expense—Office space . . . . . . . . . . . . . . . 22,000
Rent expense—Selling space . . . . . . . . . . . . . . . 26,100
Rent expense—Factory building . . . . . . . . . . . . 76,800
Maintenance expense—Factory equipment . . . 35,400
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,462,500
Sales salaries expense . . . . . . . . . . . . . . . . . . . . 392,560
Required
1. Identify and classify each of the costs above as either a product or period cost.
2. Classify each of the product costs as either direct materials, direct labor, or factory overhead.
3. Classify each of the period costs as either selling or general and administrative expenses.


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  • CreatedApril 23, 2015
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