The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Leone Company.

Required

1. Identify and classify each of the costs above as either a product or period cost.

2. Classify each of the product costs as either direct materials, direct labor, or factory overhead.

3. Classify each of the period costs as either selling or general and administrative expenses.

Transcribed Image Text:

Advertising expense Depreciation expense-Office equipment Depreciation expense-Solling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities $ 28,750 Miscellaneous production costs 7,250 Office salaries expense 8,600 Raw materials purchases. Rent expense-Office space Rent expense-Selling space. Rent expense-Factory building. 33,000 Maintenance expense-Factory equipment 8,425 63,000 w.. 925,000 .... ..... 33,550 22,000 C.. 102.600 26,100 7,350 76,800 35,400 Direct labor. 675,480 Sales. 4,462,500 Indirect labor 56,875 Sales salaries expense 392,560 Advertising expense Depreciation expense-Office equipment Depreciation expense-Solling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities $ 28,750 Miscellaneous production costs 7,250 Office salaries expense 8,600 Raw materials purchases. Rent expense-Office space Rent expense-Selling space. Rent expense-Factory building. 33,000 Maintenance expense-Factory equipment 8,425 63,000 w.. 925,000 .... ..... 33,550 22,000 C.. 102.600 26,100 7,350 76,800 35,400 Direct labor. 675,480 Sales. 4,462,500 Indirect labor 56,875 Sales salaries expense 392,560

Answer rating: 100% (QA)

Stepbystep solution Step 1 of 4 A Production cost It refers to the ... View the full answer