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Required Information
[The following Information applies to the questions displayed below.]
The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone
Company.
Advertising expense
Depreciation expense-Office equipment
Depreciation expense-Selling equipment
Depreciation expense-Factory equipment
Raw materials purchases (all direct materials)
Maintenance expense-Factory equipment
Factory utilities
Direct labor
Indirect labor
Office salaries expense
Rent expense-Office space
Rent expense-Selling space
Rent expense-Factory building
Sales salaries expense
$ 28,750
7,250
8,600
49,325
925,000
35,400
33,000
675,480
159,475
63,000
22,000
26,100
76,800
392,560
Required:
Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory
overhead. If a period cost, classify it as a selling expense or a general and administrative expense.
Note: Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or
period cost.
Costs
1. Advertising expense
2. Depreciation expense-Office equipment
3. Depreciation expense-Selling equipment
4. Depreciation expense-Factory equipment
5. Raw materials purchases (all direct materials)
6. Maintenance expense-Factory equipment
7. Factory utilities
8. Direct labor
9. Indirect labor
10. Office salaries expense
11. Rent expense-Office space
12. Rent expense-Selling space
13. Rent expense-Factory building
14. Sales salaries expense
Type of Product Cost
Type of Period Cost
