1 Determine if each item is a period or product cost. Also determine whether the costs areselling/administrative if a period cost, or direct/indirect if product cost. Period cost Product costSelling expense General and administrative expense Direct cost Indirect cost A. Paid $77,500 formaterials used for the product B. Paid sales commissions of $58,200. C. Paid $38,800 in salariesfor factory employees that make the product D. Paid $88,300 in salaries for executives (presidentand vice presidents). E. Recorded depreciation 16,400 was depreciation on factory equipment F.Recorded depreciationcost of 14,000 on the headquarters building where sales/admin are staffedF. Paid $3,100 for various suppl

Direct costs are often variable costs, meaning they fluctuate with production levels such as…

Answered: 1 Determine if each

Business

Accounting

1 Determine if each

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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Question

1 Determine if each item is a period or product cost. Also determine whether the costs are
selling/administrative if a period cost, or direct/indirect if product cost. Period cost Product cost
Selling expense General and administrative expense Direct cost Indirect cost A. Paid $77,500 for
materials used for the product B. Paid sales commissions of $58,200. C. Paid $38,800 in salaries
for factory employees that make the product D. Paid $88,300 in salaries for executives (president
and vice presidents). E. Recorded depreciation 16,400 was depreciation on factory equipment F.
Recorded depreciationcost of 14,000 on the headquarters building where sales/admin are staffed
F. Paid $3,100 for various suppl

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