FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following calendar year-end information is taken from the December 31, 2019, adjusted
and other records of Leone Company.
Advertising expense $ 28,750
Depreciation expense—Selling equipment 8,600
Depreciation expense—Factory equipment . 33,550
Factory supervision 102,600
Factory supplies used (indirect materials) 7,350
Factory utilities . 33,000
Direct labor 675,480
Indirect labor . 56,875
Miscellaneous production costs $ 8,425
Office salaries expense 63,000
Raw materials purchases (direct materials) 925,000
Rent expense—Office space 22,000
Rent expense—Selling space . 26,100
Rent expense—Factory building 76,800
Maintenance expense—Factory equipment 35,400
Sales . 4,462,500
Sales salaries expense . 392,560
Required
1. Classify each cost as either a product or period cost.
2. Classify each product cost as either direct materials, direct labor, or factory
3. Classify each period cost as either selling expenses or general and administrative expenses.
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