producing a textbook:

Insurance on the factory building and equipment 30,000

Salary of the vice president of finance 120,000
Hourly wages of printing press operators during production 100,000
Straight-line depreciation on the printing presses used to manufacture the text 3,000
Electricity used to run the presses during the printing of the text 6,500
Sales commissions paid to textbook representatives for each text sold 60,000
Paper on which the text is printed 85,000
Book covers used to bind the pages 12,000
Straight-line depreciation on an office building 4,000
Salaries of staff used to develop artwork for the text 24,000
Glue used to bind pages to cover 20,000

1. Product costs 1. Product costs 280,500

2. Period costs Insurance on the factory building and equipment 30,000
3. Direct materials Hourly wages of printing press operators during production 100,000
Straight-line depreciation on the printing presses used to manufacture the
4. Direct labor text 3,000
5. Factory
overhead Electricity used to run the presses during the printing of the text 6,500
6. Selling
expenses Paper on which the text is printed 85,000
7. Administrative expenses Book covers used to bind the pages 12,000
Salaries of staff used to develop artwork for the text 24,000
Glue used to bind pages to cover 20,000

2. Period costs 184,000

Salary of the vice president of finance 120,000
Sales commissions paid to textbook representatives for each text sold 60,000
Straight-line depreciation on an office building 4,000

3. Direct materials 117,000

Paper on which the text is printed 85,000
Book covers used to bind the pages 12,000
Glue used to bind pages to cover 20,000

4. Direct labor 124,000

Hourly wages of printing press operators during production 100,000
Salaries of staff used to develop artwork for the text 24,000