Exercise 18-6 (Algo) Classifying product and period costs LO C2 A car manufacturer incurs the following costs. Classify each cost as either a product or period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. Cost Classification Costa Salesperson smartphone costs Office building insurance used up Depreciation on factory machine Batteries for electric cars Office supplies used Property taxes on factory building Salesperson commissions Steel for cars Factory water usage Rent on factory building