managerial accounting. product cost or period cost

Assignment 1: Product Cost and Period Cost 0 1 Suppose that you have been given a summerjob as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remotecontrolled military reconnaissance aircraft The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Required: 'IO Classify each cost listed below as either a product cost or a period cost forthe purpose of preparing nancial statements for the bank points 1. Depreciation on salespersons' cars. a 2. Rent on equipment used in the factory. EBODK 3. Lubricants used for machine maintenance. _ :1. Salaries of personnel who work in the nish ed goods warehouse. at 5. Soap and paper towels used by factory workers at the end ofa shift. 5. Factory supervisors' salaries. [E 1". Heat, water, and power consumed in the factory. References 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) . Advertising costs. . Workers' compensation insurance for factory employees. . Depreciation on chairs and tables in the factory lunchroom. . The wages of the receptionist in the administrative ofces. . Cost of leasing the corporate jet used by the company's executives. . The cost of renting rooms at a Florida resort for the annual sales conference. . The cost of packaging the company's product