The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company. Advertising expense $32,500
Depreciation expense-Office equipment 7,500
Depreciation expense-Selling equipment 10,300
Depreciation expense-Factory equipment 39,750
Factory supervision 102,660
Factory supplies used 8,350
Factory utilities 34,200
Direct labor 690,000
Indirect labor 61,000
Miscellaneous production costs 8,650
Office salaries expense 73,450
Raw materials purchases* 1,000,000
Rent expense-Office space 25,600
Rent expense-Selling space 31,600
Rent expense-Factory building 76,000
Maintenance expense-Factory equipment 36,900
Sales 4,662,500
Sales salaries expense 412,560
Assume that the raw materials inventory account is used only for direct materials. Indirect materials are recorded in a factory supplies account.
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. (Leave no cell blank.)
Costs Product Cost or Period Cost Type of Product Cost Type of Period Cost
1. Advertising expense Period cost
2. Depreciation expense?Office equipment
3. Depreciation expense?Selling equipment
4. Depreciation expense?Factory equipment
5. Factory supervision
6. Factory supplies used
7. Factory utilities
8. Direct labor
9. Indirect labor
10. Miscellaneous production costs
11. Office salaries expense
12. Raw materials purchases
13. Rent expense?Office space
14. Rent expense?Selling space
15. Rent expense?Factory building
16. Maintenance expense?Factory equipment
17. Sales
18. Sales salaries expense