Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object.
Cost by Traceability Preriod or Product Direct material, Direct labor Prime or
or Factory Overhead Conversion
1. Factory utilities
2. Advertising
3. Amortization of patents on factory machine
4. State and federal income taxes
5. Office supplies used
6. Insurance on factory building
7. Wages to assembly workers
Answers: 1
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Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a prod...
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