Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object.
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Product Cost |
|||||
|
Cost |
Prime |
Conversion |
Period |
Direct |
Indirect |
|
1. Office supplies used |
____ |
____ |
____ |
____ |
____ |
|
2. Bad debts expense |
____ |
____ |
____ |
____ |
____ |
|
3. Small tools used |
____ |
____ |
____ |
____ |
____ |
|
4. Factory utilities |
____ |
____ |
____ |
____ |
____ |
|
5. Advertising |
____ |
____ |
____ |
____ |
____ |
|
6. Amortization of patents on factory machine |
____ |
____ |
____ |
____ |
____ |
|
7. Payroll taxes for production supervisor |
____ |
____ |
____ |
____ |
____ |
|
8. Accident insurance on factory workers |
____ |
____ |
____ |
____ |
____ |
|
9. Depreciation — Factory building |
____ |
____ |
____ |
____ |
____ |
|
10. State and federal income taxes |
____ |
____ |
____ |
____ |
____ |
|
11. Wages to assembly workers |
____ |
____ |
____ |
____ |
____ |
|
12. Direct materials used |
____ |
____ |
____ |
____ |
____ |