Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial 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 factory overhea whether each period cost is a selling expense or an administrative expense. Costs Classification a. Salary of chief compliance officer of company Period costs administrative expense b. Power used by painting equipment Product costs-factory overhead cost c. Instrument panel installed in the airplane cockpit Product costs-direct materials cost d. Annual bonus paid to the chief operating officer of the company Period costs administrative expense e. Turbo-charged airplane engine Product costs direct materials cost f. Interior trim material used throughout the airplane cabin Product costs factory overhead cost X g. Cost of normal scrap from production of airplane body Product costs factory overhead cost h. Hourly wages of employees that assemble the airplane Product costs direct labor cost i. Salary of the marketing department personnel Period costs selling expense j. Cost of paving the headquarters employee parking lot Period costs administrative expense Product costs direct materials cost k. Cost of electrical wiring throughout the airplane Product costs direct materials cost I. Cost of electronic guidance system installed in the airplane cockpit Period costs-administrative expense X m. Salary of plant manager Period costs-selling expense n. Cost of miniature replicas of the airplane used to promote and market the airplane Period costs administrative expense o. Human resources department costs for the year Check My Work 2 more Check My Work uses remaining Email Instructor All work saved