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1. Classify each cost listed below as either a product cost or a period cost. (20%) 1. The cost of the memory chips used in

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1. Classify each cost listed below as either a product cost or a period cost. (20%) 1. The cost of the memory chips used in a radar set. 2. Factory heating costs. 3. Factory equipment maintenance costs. 4. Training costs for new administrative employees. 5. The cost of the solder that is used in assembling the radar sets. 6. The travel costs of the company's salespersons. 7. Wages and salaries of factory security personnel. 8. The cost of air-conditioning executive offices. 9. Wages and salaries in the department that handles billing customers. 10. Depreciation on the equipment in the fitness room used by factory workers. 11. Telephone expenses incurred by factory management. 12. The costs of shipping completed radar sets to customers. 13. The wages of the workers who assemble the radar sets. 14. The president's salary. 15. Health insurance premiums for factory personnel. 16. Labor cost to assemble a table. 17. Salary of the factory supervisor. 18. Depreciation of factory copier. 19. Salesman's commission. 20. Transportation cost to ship raw material to factory. 2. Use the following appropriate information and determine the operating activities section of statement of cash flow using the indirect method. (25%) Gain on Disposition of Equipment............. Amortization Expense............. ......... Net Income................. Cash from Reissuing Treasury Stock.. Cash Dividend Paid. Decrease in Accounts Receivable. Interest Income from investments......... Sale of Investment.............................. Increase in Accrued Expenses........ ..... Increase in Prepaid Expenses............. Decrease in Income Tax Payable............. Loss of Disposition of Investment........... $2,000 1,500 3,500 1,000 2,500 500 100 10,000 1,850 300 1,550 20,000

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