Question

The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.

Advertising expense	$	31,000
Depreciation expense—Office equipment		9,500
Depreciation expense—Selling equipment		11,900
Depreciation expense—Factory equipment		37,150
Factory supervision		103,860
Factory supplies used (indirect materials)		8,600
Factory utilities		34,200
Direct labor		678,000
Indirect labor		61,800
Miscellaneous production costs		8,425
Office salaries expense		69,050
Raw materials purchases (direct)		927,500
Rent expense—Office space		23,800
Rent expense—Selling space		27,000
Rent expense—Factory building		81,600
Maintenance expense—Factory equipment		41,100
Sales		4,712,500
Sales salaries expense		406,960

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.)

Costs Product Cost or Period Cost 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

Answer 1