The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and...
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The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used (indirect materials) Factory utilities Direct labor 30,250 9,000 10,100 36,750 108,660 8,350 38,700 711,000 61,000 11,125 Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases (direct) Rent expense Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment 74,000 997,500 23,800 28,800 82,400 43,500 4,512,500 411,760 Sales Sales salaries expense Required: Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead and each of the period costs as either selling or general and administrative expenses. (Leave no cell blank.) Product Cost or Period Cost Costs Type of Product Cost Type of Period Cost 1. Advertising expense 2. Depreciation expense-Office equipment 3. Depreciation expense-Selling equipment 4. Depreciation expense-Factory equipment 5. Factory supervision 6. Factory supplies used (indirect materials) 7. Factory utilities 8. Direct labor 9. Indirect labor 10. Miscellaneous production costs 11. Office salaries expense 12. Raw materials purchases (direct) 13. Rent expense-Office space 14. Rent expense-Selling space 15. Rent expense-Factory building 16. Maintenance expense-Factory equipment 17. Sales 18. Sales salaries expense The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used (indirect materials) Factory utilities Direct labor 30,250 9,000 10,100 36,750 108,660 8,350 38,700 711,000 61,000 11,125 Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases (direct) Rent expense Office space Rent expense-Selling space Rent expense-Factory building Maintenance expense-Factory equipment 74,000 997,500 23,800 28,800 82,400 43,500 4,512,500 411,760 Sales Sales salaries expense Required: Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead and each of the period costs as either selling or general and administrative expenses. (Leave no cell blank.) Product Cost or Period Cost Costs Type of Product Cost Type of Period Cost 1. Advertising expense 2. Depreciation expense-Office equipment 3. Depreciation expense-Selling equipment 4. Depreciation expense-Factory equipment 5. Factory supervision 6. Factory supplies used (indirect materials) 7. Factory utilities 8. Direct labor 9. Indirect labor 10. Miscellaneous production costs 11. Office salaries expense 12. Raw materials purchases (direct) 13. Rent expense-Office space 14. Rent expense-Selling space 15. Rent expense-Factory building 16. Maintenance expense-Factory equipment 17. Sales 18. Sales salaries expense
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Solution 2081 answers SNo Costs Product cost or period cost Type of product cost Type of period cost Reason 1 Advertising expense Period cost Not a product cost Selling expense This is not a cost dire... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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