Cost Items:

a.	Cost of phones and computers available for sale in Best Buy's electronics department
b.	Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant
c.	Depreciation on HughesNet satellite equipment used to provide its services
d.	Electricity used to provide lighting for BestBuy's store aisles
e.	Wages for personnel responsible for quality testing of the KitchenAid products during the assembly process
f.	Salaries of BestBuy's marketing personnel planning local-newspaper advertising campaigns
g.	Perrier mineral water purchased by HughesNet for consumption by its software engineers
h.	Salaries of HughesNet area sales managers
i.	Depreciation on vehicles used to transport KitchenAid products to retail stores

Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), KitchenAid (a manufacturing-sector company), and HughesNet (a service-sector company): (Click the icon to view the cost items.) Read the requirements. Requirements 1. Distinguish between manufacturing-, merchandising-, and service-sector companies. 2. Distinguish between inventoriable costs and period costs. 3. Classify each of the cost items (a-i) as an inventoriable cost or a period cost. Explain your answers. Requirement 1. Distinguish between manufacturing-, merchandising-, and service- companies. companies provide services or intangible products to their customers-for example, legal advice or audits. companies purchase materials and components and convert them into different finished goods companies purchase and then sell tangible products without changing their basic form. Classify each of the cost items (a-i) as an inventoriable cost or a period cost. Explain your answers. a. The cost of phones and computers available for sale in Best Buy.'s electronics department is a(n) of a It becomes part of when the phones and computers are sold. b. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant is a( n) of a It is part of the that is included in the manufacturing cost of a finished good. c. Depreciation HughesNet has of a d. Electricity used to provide lighting for BestBuy's store aisles is a(n) of a It is a cost that benefits the e. Salaries of HughesNet area sales managers is a(n) of a HughesNet r f. Depreciation on vehicles used to transport KitchenAid products to retail stores is a(n) of a It is part of the and is not included in the manufacturing cost of a finished good