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.
1. Office supplies used.
2. Bad debts expense.
3. Small tools used.
4. Factory utilities.
5. Advertising.
6. Amortization of parents on factory machine.
7. Payroll taxes for production supervisor.
8. Accident insurance on factory workers.
9. Depreciation - Factory building.
10. State and federal income taxes.
11. Wages to assembly workers.
12. Direct materials used.