Classify each cost as either a product cost ar a period cost. Indicate whether e
ID: 2330568 • Letter: C
Question
Classify each cost as either a product cost ar a period cost. Indicate whether each product cost is a direct materials cost a drect laber oost, or a factory overhead cost. Indicate whether each pend cost is a selling expense or an administrative Costs a. Cost of electronic guidance system installed in the airplane cockpit b. Special advertising campaign in Aviation Wond magazine c. Salary of chief compliance officer of company d. Salary of chief financial officer e. Decals for cockpit door, the cost of which is immaterial to the cost of the final product f. Cost of electrical wiring throughout the airplane g. Cost of normal scrap from production of airplane body h. Instrument panel installed in the airplane cockpit i. Depreciation on factory equipment j. Masks for use by painters in painting the airplane body k. Cost of paving the headquarters employee parking lot I. Turbo-charged airplane enpine m. Prebuilt leather seats installed in the first-class cabin n. Human Resources Department costs for the year o. Hourly wages of employees that assemble the airplane p. Salary of the Marketing Department personnel q. Oil to lbricate factory equipment r. Yearly cost of the maintenance contract for robotic equipment s. Hydralic pumps used in the airplane's flight control system t. Cost of miniature replicas of the airplane used to promote and market the airplane u. Metal used for producing the airplane body v. Power used by painting equipment w. Annual bonus paid to the chief operating officer of the company x. Interior trim material used throughout the airplane cabin y. Salary of plant manager z. Annual fee to a celebrity to promote the aircraft Product costs-direct materials cost Product costs-direct labor cost Product costs-factory overhead cost Period costs-selling expense Period costs-administrative expenseExplanation / Answer
Classification a. Product Cost - Direct material cost b. Period Cost - Selling expense c. Period Cost - Administrative expense d. Period Cost - Administrative expense e. Product Cost - Factory overhead cost f. Product Cost - Direct material cost g. Product Cost - Factory overhead cost h. Product Cost - Direct material cost i. Product Cost - Factory overhead cost j. Product Cost - Factory overhead cost k. Period Cost - Administrative expense l. Product Cost - Direct material cost m. Product Cost - Direct material cost n. Period Cost - Administrative expense o. Product Cost - Direct labor cost p. Period Cost - Selling expense q. Product Cost - Factory overhead cost r. Product Cost - Factory overhead cost s. Product Cost - Direct material cost t. Period Cost - Selling expense u. Product Cost - Direct material cost v. Product Cost - Factory overhead cost w. Period Cost - Administrative expense x. Product Cost - Direct material cost y. Product Cost - Factory overhead cost z. Period Cost - Selling expense