Question

Problem 3-21

Identify the following costs as product or period:

Office supplies
Freight on goods purchased with terms FOB shipping point
Salary of the marketing director
Freight on goods sold to customer with terms FOB destination
Utilities expense incurred for office building
Advertising expense
Insurance on vans used to deliver goods to customers
Salaries of sales supervisors
Monthly maintenance expense for a copier
Goods purchased for resale

Answer 1

Office supplies	Product
Freight on goods purchased with terms FOB shipping point	Product
Salary of the marketing director	Period
Freight on goods sold to customer with terms FOB destination	Product
Utilities expense incurred for office building	Product
Advertising expense	Period
Insurance on vans used to deliver goods to customers	Period
Salaries of sales supervisors	Period
Monthly maintenance expense for a copier	Period
Good purchased for resale	Product