Wednesday, 13 September 2017

The following calendar year-end information is taken from the December 31, 2017

The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.                                         
Advertising expense      $              28,750    
Depreciation expense—Office equipment                           7,250      
Depreciation expense—Selling equipment                          8,600      
Depreciation expense—Factory equipment                        33,550    
Factory supervision                         102,600                  
Factory supplies used                    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                              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:

Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead and each of the period costs as either selling or general and administrative expenses.

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