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

question 32

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:

Basic Principles

Fundamental rules or doctrines that form the foundation for a system of belief, behavior, or reasoning.

Specified Design

A detailed description or plan showing how something is to be made or built.

Accidental Fire

A fire that occurs unexpectedly and unintentionally, often resulting from negligence, a lack of attention, or an unforeseen event.

Discharged Duty

The completion or fulfilment of a legal or moral obligation, relieving the individual or entity from further responsibilities.