Question

In: Accounting

Classify each of the following costs as a period cost (nonmanufacturing) or a product cost (manufacturing)....

Classify each of the following costs as a period cost (nonmanufacturing) or a product cost (manufacturing). Sales Commission

Depreciation on manufacturing equipment

Insurance for the factory building

Marketing materials

Plastic used in production

Wages paid to factory supervisor

A. Period B. Product

Solutions

Expert Solution

Period cost is the cost that is incurred for a particular period and recorded periodically in that particular period only.

Product cost is the cost which is incurred for making that goods or for a product repair and while accounting it is recorded for that related product.

1.Sales - Product cost

2. Commission - Period cost

3. Depreciation on manufacturing equipment - period cost

4. Insurance for factory building - period cost

5. Marketing materials - period cost

6. Plastic used in production - product cost

7. Wages paid to factory supervisor - period cost

ekkarill92 answered 2 years ago
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