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.
Correct Answer:

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