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

question 68

Essay

The Giga Company produces tablet computers.The following information is provided:
$\begin{array}{lrr} \text { a) Materials used} &\$216,000\\ \text {b) Advertising } &\$40,000\\ \text { c) Insurance, factory } &\$20,000\\ \text {d) Administrative salaries } &\$50,000\\ \text {e) Property taxes, factory } &\$12,000\\ \text { f) Utilities, administrative building } &\$22,000\\ \text { g) Factory labor } &\$80,000\\ \text {h) Sales commissions } &\$56,000\\ \text {i) Factory supervisor's salary } &\$60,000\\ \text { j) Research and development } &\$18,000\\ \text { k) Depreciation, factory } &\$12,000\\ \text { l) Depreciation, office } &\$8,000\\ \text { m) Indirect materials} &\$14,000\\\end{array}$

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.
$$\begin{array} { | l | l | l | l | } \hline \text { Itern } & \text { Period cost } & \text { Direct product cost } & \text { Indirect product cost } \\\hline \text { a) } & & & \\\hline \text { b) } & & & \\\hline \text { c) } & & & \\\hline \text { d) } & & & \\\hline \text { e) } & & & \\\hline \text { f } & & & \\\hline \text { g) } & & & \\\hline \text { h) } & & & \\\hline \text { i) } & & & \\\hline \text { g) } & & & \\\hline \text {k) } & & & \\\hline \text { l) } & & & \\\hline \text {m)}&&&\\\hline \text {Total}&&&\\\hline\end{array}$$

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Definitions:

Exculpatory Agreement

A contract provision that relieves one party of liability if damages are caused during the execution of the contract.

In Pari Delicto

A legal doctrine stating that if both parties involved in a lawsuit are equally at fault, the court will not assist either party.

In Pari Delicto

A legal doctrine that prevents a plaintiff who has participated in wrongdoing related to the lawsuit from recovering damages.

Illegal Agreement

A contract or arrangement that is not enforceable by law because it involves activities prohibited by legislation or goes against public policy.