Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled 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:

Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank.

1. Depreciation on satespersons' cars. 2. Rent on equipment used in the factory. Lubricants used for machine maintenance. Salaries of personnel who work in the nished goods warehouse. Product Cost Soap and paper towels used by factory workers at the end of a shift. a Factory supenrisors' salaries. . Heat, water, and power consumed in the factory. Period Cost n Materials used for boxing products for shipment overseas. {Units are not normally boxed.) a. some... 10. Workers compensation insurance for factoryr employees. - Depreciation on chairs and tables in the factory lunchroom. 11. 12. The wages of the receptionist in the administrative ofces. . Cost of leasing the corporate jet used by the company's executives. 13 m The cost of renting rooms at a Florida resort for the annual sales conference. 15 . The cost of packaging the company's product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 1,300 1,400 1,500 Fixed cost Variable cost Total cost 0 $ 0 $ 0 Average cost per cup of coffee servedComplete this question by entering your answers in the tabs below. Required 1 Required 2 Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? OIncrease ODecrease ORemain the same