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Classify each of the following costs as a period cost or an inventoriable product cost. If you classify the cost as an inventoriable product​ cost, further classify it as direct material​ (DM), direct labor​ (DL), or manufacturing overhead​(MOH).

a.

▼

Period

Product - DL

Product - DM

Product - MOH

Standard packaging materials used to package individual units of product for sale​ (for example, cereal boxes in which the cereal is​ packaged)

b.

▼

Period

Product - DL

Product - DM

Product - MOH

  Lease payment on administrative headquarters
c.

▼

Period

Product - DL

Product - DM

Product - MOH

  Telephone bills relating to the customer service call center
d.

▼

Period

Product - DL

Product - DM

Product - MOH

  Property insurance- 40% of building is used for sales and administration
▼

Period

Product - DL

Product - DM

Product - MOH

  Property insurance- 60% of building is used for manufacturing
e.

▼

Period

Product - DL

Product - DM

Product - MOH

  Wages and benefits paid to​ assembly-line workers in the manufacturing plant

Respuesta :

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Answer:

A) Standard packaging materials: Product - DM

B) Lease payment on administrative headquarter: Period

C) Telephone bills (customer service): Period

D) Property insurance (40% of building is used for S&A): Period

E) Property insurance (60% of building is used for manufacturing): Product MOH

F) Wages and benefits paid to​ assembly-line workers: Product DL

Explanation:

Period costs are not include in the COGS and are generally included under sales and administrative costs.

Product costs are costs incurred in the production of a good or service.

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