Exercise 14-2 Cost classification LO C2

Listed here are product costs for the production of soccer balls. Identify each cost (a) as either fixed or variable and (b) as either direct or indirect by selecting the appropriate dropdowns.

	Product Cost	Variable or Fixed	Direct or Indirect
1.	Lace to hold leather together
2.	Wages of assembly workers
3.	Coolants for machinery
4.	Annual flat fee paid for factory security
5.	Leather covers for soccer balls
6.	Machinery depreciation (straight-line)
7.	Taxes on factory

Exercise 14-6 Cost classification LO C3

Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object. (Leave no cell blank if there is no effect select "NA - Not a product cost".)

	Cost by Traceability	Period or Product	Direct material, Direct labor, or Factory Overhead	Prime or Conversion	Direct or Indirect
1.	Factory utilities
2.	Advertising
3.	Amortization of patents on factory machine
4.	State and federal income taxes
5.	Office supplies used
6.	Insurance on factory building
7.	Wages to assembly workers