(Recommended Below your Prob B working papers are the answers to the VERY similar, Prob A. Refer to the Prob A answers to help you complete your problem B assignment.)

Exercise 1-7 (also in your book at end of chapter)

National Express reports the following costs and expenses in June 2022 for its delivery service.

Indirect Materials	6,400		CEO's salary	12,000
Depreciation on delivery equipment	11,200		Drivers' salaries	16,000
Repairs on office equipment	180		Advertising	4,600
Property taxes on office building	870		Office supplies	650
Gas and oil for delivery trucks	2,200		Office utilities	990
Delivery equipment repairs	300		Dispatcher's salary	5,000

Instructions:

Classify each item above as either a Product or a Period Cost. Write the description

and amount into the appropriate one of the two table below. Total each table. (The first

item Indirect Materials is completed as an example)

Delivery Service (Product) Costs			Period Costs
Indirect Materials	6,400
Total			Total

Subtle hint: Dont over-think it. If the description has words like factory, plant, production or manufacturing it is a product cost. Ex: wages for the security guard for the parking lot is a period cost while the security guard wages for the plant parking lot is product cost.