The Giga Company Produces Tablet Computers Required:Classify Each of the Company's Costs as a Period Cost

question 35

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The Giga Company produces tablet computers. The following information is provided:
$\begin{array}{lc}\text { a) Materials used } & \$ 216,000 \\ \text { b)Advertising } & \$ 40,000 \\\text { c) Insurance, factory } & \$ 20,000 \\\text { d) Administrative salaries } & \$ 50,000 \\\text { e) Property taxes, factory } & \$ 12,000 \\\text { f) Utilities, administrative building } & \$ 22,000\\\text {g) Factory labor}&\$80,000\\\text {h) Sales commissions}&\$56,000\\\text {i) Factory supervisor's salary}&\$60,000\\\text {j) Research and development}&\$18,000\\\text {k) Depreciation, factory}&\$12,000\\\text {l) Depreciation, office}&\$8,000\\\text { m) Indirect materials }&\$14,000\end{array}$ Required:Classify each of the company's costs as a period cost (general, selling, and administrative cost) or as a direct or indirect product cost. Enter the dollar amount of the cost in the appropriate column. After entering all amounts, calculate the total general, selling, and administrative cost, the total direct product cost, and the total indirect product cost.

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Definitions:

Brand Name Drugs

Medications sold under a proprietary, trademarked name, as opposed to their generic equivalents.

Medigap

Private insurance to supplement Medicare benefits for payment of the deductible, co-payment, and coinsurance.

Medicare Benefits

Government-funded health insurance benefits available to eligible individuals, typically those who are 65 or older, or those with certain disabilities.

Coinsurance

A percentage that a patient is responsible for paying for each service after the deductible has been met.