Suppose that you have been given a summer job at Fairwings Avionics, a company that manufactures sophisticated radar sets for commercial aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its tremendous growth. The bank requires financial statements before approving such a loan.

Required:

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

Costs	Product/Period
1.	The cost of the memory chips used in a radar set.	(Click to select)Period costProduct cost
2.	Factory heating costs.	(Click to select)Period costProduct cost
3.	Factory equipment maintenance costs.	(Click to select)Product costPeriod cost
4.	Training costs for new administrative employees.	(Click to select)Period costProduct cost
5.	The cost of the solder that is used in assembling the radar sets.	(Click to select)Period costProduct cost
6.	The travel costs of the companys salespersons.	(Click to select)Period costProduct cost
7.	Wages and salaries of factory security personnel.	(Click to select)Period costProduct cost
8.	The cost of air-conditioning executive offices.	(Click to select)Product costPeriod cost
9.	Wages and salaries in the department that handles billing customers.	(Click to select)Product costPeriod cost
10.	Depreciation on the equipment in the fitness room used by factory workers.	(Click to select)Period costProduct cost
11.	Telephone expenses incurred by factory management.	(Click to select)Period costProduct cost
12.	The costs of shipping completed radar sets to customers.	(Click to select)Period costProduct cost
13.	The wages of the workers who assemble the radar sets.	(Click to select)Product costPeriod cost
14.	The presidents salary.	(Click to select)Period costProduct cost
15.	Health insurance premiums for factory personnel.	(Click to select)Product costPeriod cost