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E1-3 Ryan corporation

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E1-3 Ryan Corporation incurred the following costs while manufacturing its product.
Materials used in product $100,000 Advertising expense $45,000
Depreciation on plant 60,000 Property taxes on plant 14,000
Property taxes on store 7,500 Delivery expense 21,000
Labor costs of assembly-line workers 110,000 Sales commissions 35,000
Factory supplies used 13,000 Salaries paid to sales clerks 50,000

(a) Identify each of the above costs as direct materials, direct labor, manufacturing overhead,
or period costs.
(b) Explain the basic difference in accounting for product costs and period costs.

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