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Inventoriable costs versus period costs. Each of the following cost items pertains to one of these companies: Home Depot ( a merchandising - sector company

Inventoriable costs versus period costs. Each of the following cost items pertains to one of these companies: Home Depot (a merchandising-sector company), Apple (a manufacturing-sector company), and Rent a Nanny (a service-sector company): A. Cost of lumber and plumbing supplies available for sale at Home Depot B. Electricity used to provide lighting for assembly-line workers at an Apple manufacturing plant C. Depreciation on store shelving in Home Depot D. Mileage paid to nannies traveling to clients for Rent a Nanny E. Wages for personnel responsible for quality testing of the Apple products during the assembly process F. Salaries of Rent a Nanny marketing personnel planning local-newspaper advertising campaigns G. Lunches provided to the nannies for Rent a Nanny H. Salaries of employees at Apple retail stores I. Shipping costs for Apple to transport products to retail stores 1. Distinguish between manufacturing-, merchandising-, and service-sector companies. 2. Distinguish between inventoriable costs and period costs. 3. Classify each of the cost items (AI) as an inventoriable cost or a period cost. Explain your answers. Required

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