Determining Inventory Costs Pro Packs, Inc. manufactures its own backpacks, marketed to customers primarily for camping and travel needs. The company is reviewing its policy for capitalizing inventory costs and wants your help to determine whether the following costs should be capitalized as part of the cost of inventory: 1. Canvas used in the construction of the packs; 2. Zippers purchased from YKK (a supplier), including the cost of freight for the zippers to be shipped; 3. Wages paid to employees operating industrial sewing machines; 4. Electric utility bills related to operation of the plant; and 5. Contract labor paid to update and maintain the company website, through which customers can directly place backpack orders. For each cost noted, explain your position and the source you consulted