Ask Question
14 January, 18:12

For each item listed below, indicate in the space to the right whether the item would be considered a product cost or a period cost for a manufacturing company. 1. Factory supervisory salaries 2. Sales commissions 3. Income tax expense 4. Indirect materials used 5. Indirect labor 6. Office salaries expense 7. Property taxes on factory building 8. Sales manager's salary 9. Factory wages expense 10. Direct materials used

+4
Answers (1)
  1. 14 January, 18:15
    0
    1. Factory supervisory salaries Production Cost Factory Overhead

    2. Sales commissions Period Cost Selling expense

    3. Income tax expense Period Cost tax expense

    4. Indirect materials used Production Cost Factory Overhead

    5. Indirect labor Production Cost Factory Overhead

    6. Office salaries expense Period Cost Administrative expense

    7. Property taxes on factory building Production Cost Factory Overhead

    8. Sales manager's salary Period Cost Selling expense

    9. Factory wages expense Production Cost Direct Labor

    10. Direct materials used Production Cost Direct Materials

    Explanation:

    A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets

    Period cost goes straight to expense account

    While

    Production Cost do capitalizes through Inventory and later recognize as cost of goods sold.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “For each item listed below, indicate in the space to the right whether the item would be considered a product cost or a period cost for a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers