the following is a list of costs that were incurred in the production and sale of la 647566

The following is a list of costs that were incurred in the production and sale of lawn mowers:

a. Payroll taxes on hourly assembly line employees.

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b. Filter for spray gun used to paint the lawn mowers.

c. Cost of boxes used in packaging lawn mowers.

d. Premiums on insurance policy for factory buildings.

e. Gasoline engines used for lawn mowers.

f. Salary of factory supervisor.

g. Tires for lawn mowers.

h. Cost of advertising in a national magazine.

i. Plastic for outside housing of lawn mowers.

j. Salary of quality control supervisor who inspects each lawn mower before it is shipped.

k. Steering wheels for lawn mowers.

l. Cash paid to outside firm for janitorial services for factory.

m. Engine oil used in mower engines prior to shipment.

n. Attorney fees for drafting a new lease for headquarters offices.

o. Maintenance costs for new robotic factory equipment, based upon hours of usage.

p. Straight line depreciation on the robotic machinery used to manufacture the lawn mowers.

q. License fees for use of patent for lawn mower blade, based upon the number of lawn mowers produced.

r. Telephone charges for controller’s office.

s. Paint used to coat the lawn mowers.

t. Steel used in producing the lawn mowers.

u. Commissions paid to sales representatives, based upon the number of lawn mowers sold.

v. Electricity used to run the robotic machinery.

w. Factory cafeteria cashier’s wages.

x. Property taxes on the factory building and equipment.

y. Salary of vice president of marketing.

z. Hourly wages of operators of robotic machinery used in production.


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. Use the following tabular headings for your answer, placing an “X” in the appropriate column.


Product Costs

Period Costs



















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