LO 16-2, LO 16-3, LO 16-5 EXERCISE 16.13% Classifying Costs a. C. Classify each of the following costs as a product cost or period cost. If it is a product cost, classify it as direct (or indirect) materials, direct (or indirect) labor, or overhead. Wheat used to make flour at General Mills. b. Sales commissions paid to sales personnel at Gap retail stores. Costs incurred by General Motors for automobile seats purchased from the Lear-Corporation. d. Insurance paid on the Target retail stores in Michigan. Insurance paid on the Target warehouse holding merchandise inventory. f. Bonus paid to all production employees of Chrysler Group at the end of a profitable fiscal year. g. Health care costs for the office workers at the headquarters of Johnson & Johnson Company h. Bolts used by Trek Bicycle Corporation to secure the bike parts to the frame