The following is a list of costs that were incurred in producing this textbook:
a. Insurance on the factory building and equipment
b. Salary of the vice president of finance
c. Hourly wages of printing press operators during production
d. Straight line depreciation on the printing presses used to manufacture the text
e. Electricity used to run the presses during the printing of the text
f. Sales commissions paid to textbook representatives for each text sold
g. Paper on which the text is printed
h. Book covers used to bind the pages
i. Straight line depreciation on an office building
j. Salaries of staff used to develop artwork for the text
k. Glue used to bind pages to cover
With respect to the manufacture and sale of this text, classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense.
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