Testet 2 of 2 2 0 DESODO MINUTES SECONDS Versus Period Costs Help CY Paste Inc. is a manufacturing company operating in the southeastern United States. The company has three primary product lines, as well as several secondary lines. The company's controller is in the process of the annual financial statements and will need to classify the following cost objects seither product costs or period costs. For each of these costs, determine the amounts that will be considered product the amounts that will be considered period costs Cost Object Product Period Costs Costs 1. Watson paid $2.5 million in interest costs for a new debt issuance-the proceeds were used to fund the construction of a new manufacturing plant 3 2. Payments to SE EMC, the utilities company which provides both gas and electric to Watson, totaled $3.6 million for the year. 4 3. The invoice price for raw materials for the year totaled $9.415.200 which included a discount of 2 percent off of the original purchase prices and freight-in of $7.200. $9.415200 B 4. Watson spent $5.1 million on advertising costs during 5 the year, with $350,000 of the total representing the salaries of the staff in the promotions department 5. Rent costs for several buildings located outside of the 6cman's main campus and used to manufacture MacBook Air