ACCT 21 - Chapter 2: Assignment Exercise A: Product Costs, Period Costs, Prime Costs and Conversion Costs The following costs were taken from the Kelly's Company. You are being asked to calculate the product costs, period costs, prime costs, and conversion costs. Cost incurred: Selling expenses $40,000 Direct labor $100,000 Factory insurance $15,000 Factory depreciation $20,000 Indirect labor $35,000 Direct material $145,000 Administrative expenses $35,000 Factory utilities 14,000 Indirect material $10,000