Pena Corporation incurred the following costs while manufacturing its product.

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 periodcosts.

Transcribed Image Text:

Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers 10,000 Sales commissions Factory supplies used $45,000 Property taxes on plant 14,000 21,000 35,000 Salaries paid to sales clerks 50,000 $100,000 Advertising expense 60,000 7,500 Delivery expense 13,000