Accounting for product costs and period costs

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Reference no: EM13521231

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.

Reference no: EM13521231

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