The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Best Bikes.
Advertising expense . . . . . . . . . . . . . . . . . . . . $ 20,250
Depreciation expense—Office equipment. . . . 8,440
Depreciation expense—Selling equipment . . . 10,125
Depreciation expense—Factory equipment . . . 35,400
Factory supervision . . . . . . . . . . . . . . . . . . . . 121,500
Factory supplies used . . . . . . . . . . . . . . . . . . . . 6,060
Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . 37,500
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . .562,500
Indirect labor. . . . . . . . . . . . . . . . . . . . . . . . . . . 59,000
Miscellaneous production costs . . . . . . . . . . . $ 8,440
Office salaries expense . . . . . . . . . . . . . . . . . . 70,875
Raw materials purchases . . . . . . . . . . . . . . . . . 894,375
Rent expense—Office space . . . . . . . . . . . . . 23,625
Rent expense—Selling space . . . . . . . . . . . . . 27,000
Rent expense—Factory building . . . . . . . . . . . 93,500
Maintenance expense—Factory equipment . . . 30,375
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,942,625
Sales salaries expense . . . . . . . . . . . . . . . . . . 295,300
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.