Classifying Costs The following is a list of costs that were incurred in the production and sale of large commerdal airplanes: Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a facte overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Cost of electronic guidance system installed in the airplane cockpit b. Special advertising campaign in Aviation World magazine c. Salary of chief compliance officer of company d. Salary of chief financial officer e. Decals for cockpit door, the cost of which is immaterial to the cost of the final product f. Cost of electrical wiring throughout the airplane a. Cost of normal scrap from production of airplane body h. Instrument panel installed in the airplane cockpit i. Depreciation on factory equipment j. Masks for use by painters in painting the airplane body k. Cost of paving the headquarters employee parking lot I. Turbo-charged airplane engine m. Prebuilt leather seats installed in the first-class cabin n. Human Resources Department costs for the year Next