Classify Each of the Following Costs for Harrison Company as a Selling

question 148

Essay

Classify each of the following costs for Harrison Company as a selling or general and administrative period cost or as a direct or indirect product cost by entering the dollar amount(s)in the appropriate column(s):
A.Paid $75,000 in wages for employees who assemble the company's products.
B.Paid sales commissions of $58,000.
C.Paid $38,000 in salaries for factory supervisors.
D.Paid $88,000 in salaries for executives (president and vice presidents).
E.Recorded depreciation cost of $25,000.$13,000 was depreciation on factory equipment and $12,000 was depreciation on the company headquarters building.
F.Paid $4,000 for various supplies that it used in the factory (oil and materials used in machine maintenance).
G.Used $10,000 in prepaid corporate liability insurance.

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Definitions:

Nitrogen

A chemical element with symbol N, atomic number 7; a colorless, odorless unreactive gas that forms about 78% of the earth's atmosphere and is a constituent of all living tissues.

Coriolis Effect

A deflection of moving objects when they are viewed in a rotating reference frame, often observed in the movement of air masses on Earth, influencing weather patterns and ocean currents.

Deflection

The change in direction of a wave or object due to a change in its medium or the presence of an obstacle.

Earth Rotation

The spinning of the Earth around its own axis, which takes approximately 24 hours to complete and results in day and night.