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Ryan Corporation incurred the following costs while manufacturing its product.
Materials used in product
$100,000
Advertising expense
$45,000
Depreciation on plant
60,000
Property taxes on plant
14,000
Property taxes on store
7,500
Delivery expense
21,000
Labor costs of assembly-line workers
110,000
Sales commissions
35,000
Factory supplies used
13,000
Salaries paid to sales clerks
50,000
Instructions
(a) Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.
(b) Explain the basic difference in accounting for product costs and period costs.
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