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 company