Classifying costs: product or G, S, & A/asset or expense
Required
Use the following format to classify each cost as a product cost or a general, selling, and administrative (G, S, & A) cost. Also indicate whether the cost would be recorded as an asset or an expense. The first item is shown as an example.
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Product/ |
Asset/ |
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Cost Category |
G, S, & A |
Expense |
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Production supplies |
Product |
Asset |
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Depreciation on administration building |
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Depreciation on manufacturing equipment |
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Research and development costs |
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Cost to set up manufacturing equipment |
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Utilities used in factory |
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Cars for sales staff |
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Distributions to stockholders |
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General office supplies |
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Raw materials used in the manufacturing process |
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Cost to rent office equipment |
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Wages of production workers |
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Advertising costs |
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Promotion costs |