E1.8 (lo 2), ap evilene company makes industrial-grade brooms. it incurs the following costs.

1. salaries for broom inspectors.

2. copy machine maintenance at corporate headquarters.

3. hourly wages for assembly workers.

4. research and development for new broom types.

5. salary for factory manager.

6. depreciation on broom-assembly equipment.

7. salary for the ceo administrative assistant.

8. wood for handles.

9. factory cleaning supplies.

10. lubricants for broom-assembly factory equipment.

11. salaries for customer service representatives.

12. salaries for factory maintenance crew.

13. sales team golf outings with customers.

14. salaries for the raw materials receiving department employees. 1

5. advertising expenses. 1

6. depreciation on the cfo company car.

17. straw for brooms. 1

8. salaries for sales personnel.

19. shipping costs to customers.

instructions a. indicate whether each cost is direct materials, direct labor, manufacturing overhead, or nonmanufacturing.

indicate whether each cost is a product cost or a period cost.


  1. Based on the costs to AP Evilene Company which makes industrial-grade brooms, the classifications of the costs are:
    1. Product and Manufacturing
    2. Period and nonmanufacturing
    3. Product and Direct labor
    4. Period and nonmanufacturing
    5. Product and Manufacturing
    6. Product and Manufacturing
    7. Period and nonmanufacturing
    8. Product and Direct materials
    9. Product and Manufacturing
    10. Product and Manufacturing
    11. Period and nonmanufacturing
    12. Product and Manufacturing
    13. Period and nonmanufacturing
    14. Period and nonmanufacturing
    15. Period and nonmanufacturing
    16. Period and nonmanufacturing
    17. Product and Direct materials
    18. Period and nonmanufacturing
    19. Period and nonmanufacturing

    What are the types of costs?

    There are period costs which are those which are only incurred in a period of production and are not related to production of goods and services but instead to the selling of them.
    Product costs are incurred when the business produces a good or service. They can be direct labor or materials, or a manufacturing overhead that is indirectly related to production.
    Find out more on period and product costs at


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