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3Cost Determination

3Cost Determination - Consider each of the following items...

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Consider each of the following items. Classify each item as either a PRODUCT cost or a PERIOD (S,G&A) cost. If you identify an item as a PRODUCT cost, determine whether that cost would be DIRECT OR INDIRECT. a. The cost of a production equipment lease. $20,000 b. Property taxes on the factory building. $12,000 c. Production supervisory salaries. $45,000 d. Depreciation on the factory lunchroom equipment and facilities. $16,000 e. Marketing and advertising fees related to a special sales and promotion event. $ 4,000 f. Bottled water for Production line employees $22,000 g. Indirect Materials $78,000 h. Advertising Expense $89,000 i. Rental fee paid for factory equipment $12,000 j. Coolant for Production Machinery $ 1,000 k. Sales Commissions to be paid $98,000 l. Security guards protecting factory access $67,000 m. Direct Materials to be used $90,000 n. Direct Labor cost expected $24,000 o. A Raw Material given away as a souvenir to Congresspersons at a political convention. $ 9,000 p. Toilet paper and Paper Towels used in the factory restroom
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