Use the following format to classify each cost as a product cost or a general, selling, and… 1 answer below »

Classifying costs: product or G, S, & A/asset or expense

Required

Use the following format to classify each cost as a product cost or a general, selling, and administrative (G, S, & A) cost. Also indicate whether the cost would be recorded as an asset or an expense. The first item is shown as an example.

Product/

Asset/

Cost Category

G, S, & A

Expense

Production supplies

Product

Asset

Depreciation on administration building

Depreciation on manufacturing equipment

Research and development costs

Cost to set up manufacturing equipment

Utilities used in factory

Cars for sales staff

Distributions to stockholders

General office supplies

Raw materials used in the manufacturing process

Cost to rent office equipment

Wages of production workers

Advertising costs

Promotion costs