5. The salary of the assembly shop's supervisor 6. The salary of the company's accountant. 7. Depreciation on equipment used to test assembled computers before release to customers. 8. Rent on the facility in the industrial park. EXERCISE 1-3 Classifying Costs as Product or Period Costs LO1-3 Suppose that you have been given a summer job as an intern at Issac Aircams, a company that man factures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing finan- cial statements for the bank. 1. Depreciation on salespersons' cars. 2. Rent on equipment used in the factory. Managerial Accounting and Cost Concepts sed for machine maintenance. sonnel who work in the finished goods warehouse. paper towels used by factory workers at the end of a shift. 3. Lubricants used for machine main Salaries of personnel who work in the finished 5. Soap and paper towels used by factory 6. Factory supervisors' salaries. 7 Heat, water, and power consumed in the factor rials used for boxing products for shipment overseas. (Units are not normally boxed.) 9. Advertising costs. 10. Workers' compensation insurance for factory en Depreciation on chairs and tables in the factory lunchroom. 19The wages of the receptionist in the administrative offices. 13. Cost of leasing the corporate jet used by the company's executives. 14. The cost of renting rooms at a Florida resort for the annual sales conference, 15. The cost of packaging the company's product