Product Costs vs. Period Cost

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Attorney fees for drafting a new lease for headquarter offices

Admin

Factory cafeteria cashier's wages

Admin

Telephone charges for company controller's office

Admin

Payroll taxes on hourly assembly line employees

Direct Labor

Cost of boxes used in packaging lawn mowers

Direct Materials

Gasoline engine used for lawn mowers

Direct Materials

Steel used in producing the lawn mowers

Direct Materials

Steering wheels for lawn mower

Direct Materials

Tires for lawn mowers

Direct Materials

Cash paid to outside firm for janitorial services for factory

Factory Overhead

Electricity used to run the robotic machinery

Factory Overhead

Engine oil used in mower engines prior to shipment

Factory Overhead

Filter for spray gun used to paint the lawn mowers

Factory Overhead

Maintenance costs for new robotic factory equipment, based on hours of usage

Factory Overhead

Paint used to coat the lawn mowers

Factory Overhead

Plastic for outside of housing of lawn mowers

Factory Overhead

Premiums on insurance policy for factory buildings

Factory Overhead

Property tacked on the factory building and equipment

Factory Overhead

Salary of factory supervisor

Factory Overhead

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

Factory Overhead

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

Factory Overhead

Commissions paid to sales representatives, based on the number of lawn mowers sold

Selling

Cost of advertising in a national magazine

Selling

Hourly wages of operators of robotic machinery used in production

Selling

License fees for use of patent for lawn mower blade, based on the number of lawn mowers produced

Selling

Salary of vice president of marketing

Selling


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