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Classifying Costs

The following is a list of costs incurred by several manufacturing companies:

Classify each of the following costs as product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense:

Costs	Classification
a. Annual picnic for plant employees and their families	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
b. Cost of fabric used by clothing manufacturer	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
c. Cost of plastic for a toy manufacturer	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
d. Cost of sewing machine needles used by a shirt manufacturer	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
e. Cost of television commercials	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
f. Depreciation of copying machines used by the Marketing Department	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
g. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
h. Depreciation of office building	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
i. Depreciation of robotic equipment used to assemble a product	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
j. Electricity used to operate factory machinery	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
k. Factory janitorial supplies	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
l. Fees charged by collection agency on past-due customer accounts	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
m. Fees paid to lawn service for office grounds	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
n. Maintenance costs for factory equipment	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
o. Oil lubricants for factory plant and equipment	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
p. Pens, paper, and other supplies used by the Accounting Department	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
q. Repair costs for factory equipment	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
r. Rent for a warehouse used to store work in process and finished products	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
s. Salary of a physical therapist who treats plant employees	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
t. Salary of the manager of a manufacturing plant	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
u. Telephone charges by corporate office	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
v. Travel costs of marketing executives to annual sales meeting	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
w. Wages of a machine operator on the production line	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense
x. Wages of production quality control personnel	Product costs-direct materials costProduct costs-direct labor costProduct costs-factory overhead costPeriod costs-selling expensePeriod costs-administrative expense