Use the following table to classify each cost as a product cost or an SG&A cost. Also
Question:
Use the following table to classify each cost as a product cost or an SG&A cost. Also indicate whether the cost would be recorded as an asset or an expense. Assume product cost is defined by generally accepted accounting principles. The first item is shown as an example.
Cost Category Product/SG&A Asset/Expense
Wages of production workers......................Product..................................Asset
Advertising costs
Promotion costs
Production supplies
Depreciation on administration building
Depreciation on manufacturing equipment
Research and development costs
Cost to set up manufacturing equipment
Utilities used in manufacturing facility
Cars for sales staff
Real estate tax levied on a factory
General office supplies
Raw materials used in the manufacturing process
Cost to rent office equipment
Step by Step Answer:
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds