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 it finance its growth. The bank requires financial statements before approving such a loan.

Required:

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

1. Depreciation on salespersons cars

2. Rent on equipment used in the factory

3. Lubricants used for machine maintenance

4. Salaries of personnel who work in the finished goods warehouse

5. Soap and paper towels used by factory workers at the end of a shift

6. Factory supervisors salaries

7. Heat water and power consumed in the factory

8. Materials used for boxing products for shipment overseas (Units are not normally boxed)

9. Advertising cost

10. Workers compensation insurance for factory employees

11. Depreciation on chairs and tables in the factory lunchroom

12. The wages of the receptionist in thhe administrative office

13. Cost of leasing the corporate jet used by the companys executives

14. The cost of renting rooms at a Florida resort for the annual sales conference

15. The cost of packaging the companys product