Wu-Li Corporation incurred the following costs while manufacturing its product:

Instructions
(a) Identify each of the above costs as direct materials, direct labour, manufacturing overhead, or period costs.
(b) Explain the basic difference in accounting for product costs and period costs.

Transcribed Image Text:

Materials used in product Depreciation on plant Property taxes on store Labour costs of assembly-line workers Factory supplies used $45,000 14,000 21,000 35,000 50,000 $100,000 Advertising expense 60,000 Property taxes on plant 7,500 Delivery expense Sales commissions Salaries paid to sales clerks 110,000 13,000