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F. Naz
F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 4088
Experience:  Experience with chartered accountancy
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The following is a list of costs that were incurred in the

Customer Question

The following is a list of costs that were incurred in the production and sale of lawn
mowers:
a. Attorney fees for drafting a new lease for headquarters offices.
b. Commissions paid to sales representatives, based on the number of lawn mowers
sold.
c. Property taxes on the factory building and equipment.
d. Hourly wages of operators of robotic machinery used in production.
e. Salary of vice president of marketing.
f. Gasoline engines used for lawn mowers.
g. Factory cafeteria cashier’s wages.
h. Electricity used to run the robotic machinery.
i. Maintenance costs for new robotic factory equipment,based on hours of usage.
j. License fees for use of patent for lawn mower blade, based on the number of lawn
mowers produced.
k. Salary of factory supervisor.
l. Steel used in producing the lawn mowers.
m. Telephone charges for company controller’s office.
n. Paint used to coat the lawn mowers.
o. Straight-line depreciation on the robotic machinery used to manufacture the lawn
mowers.
p. Tires for lawn mowers.
q. Engine oil used in mower engines prior to shipment.
r. Cash paid to outside firm for janitorial services for factory.
s. Cost of advertising in a national magazine.
t. Salary of quality control supervisor who inspects each lawn mower before it is
shipped.
u. Plastic for outside housing of lawn mowers.
v. Steering wheels for lawn mowers.
w. Filter for spray gun used to paint the lawn mowers.
x. Cost of boxes used in packaging lawn mowers.
y. Premiums on insurance policy for factory buildings.
z. Payroll taxes on hourly assembly line employees.
Instructions
Classify each cost as either a product cost or a period cost. Indicate whether each
product cost is a direct materials cost, a direct labor cost, or a factory overhead cost.
Indicate whether each period cost is a selling expense or an administrative expense.
Submitted: 4 years ago.
Category: Homework
Expert:  F. Naz replied 4 years ago.
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