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Cost analysis and identification
Georgia Pacific, a manufacturer, incurs the following costs.
Indicate each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead. If a product cost, classify it as prime or conversion. Select "None" if none of the categories and "both" if both the categories applied for the particular item, For period cost select "Applicable" if a category applies and "Not applicable" if it does not apply. Leave no cells blank.
Product Cost
Period Cost
Cost
Prime
Conversion
1.
Factory utilities
2.
Advertising
3.
Amortization of patents on factory machine
4.
State and federal income taxes
5.
Office supplies used
6.
Bad debts expense
7.
Small tools used
8.
Payroll taxes for production supervisor
9.
Accident insurance on factory workers
10.
Depreciation - Factory building
11.
Wages to assembly workers
12.
Direct materials used
Indicate each product cost as either a direct cost or an indirect cost using the product as the cost object.(Select "None" if none of the categories and "both" if both the categories applied for the particular item.)
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All of the following are product costs for financial reporting except:
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