Topic 1: Cost Classification Direction: Read and answer what is roquired. 1-Suppose that you have been given a summer job as an intem at ABC Aircars, company that manufactures sophisticated spy cameras for remsteconetrolled military reconnaissance aircratt. The cempany, which is privatcly awoed, his appeosehed a bank tor a bain to help it finane its growth. The bank requires finincial statencats before approvisg such a loan. You have been avked to belp prepare the financial stanements and were given the following liss of coss: 1. Rent on equipment used is the factory. 2. Lubricants used for machise maintenance. 3. Sosp and paper sowels used by factory weikers at the end of a shith. 4. Factory supervison's sularies. 5. Heat, water, and power censumed in the fictery: 6. Mdvertising costs. 7. Weekers" compensation inuurance for fachary engployees. 8. The wages of the receptionist in the administrative offices. Requint! Clasily the above couts foe the purpene of propuring the finaseiail statensents for the bank. 2- The PC Woris assembles custors computers freen compoticets rupplied by various manufacturerk. The company is very small and its asembly alop and setuil vales doec are boused in a single ficility in a Redmend. Whahingtion, indiatral park. Lidee below are some of the costs that are incurred at the company Revuired. For each cost, indicate whisther it would most likely be classifiod as direst laber, direct materials, manufacturing orerhead, selling, er an alfinitistrative cent. 1. The cost of a hard drive installod in a coenputer. 2. The cost of advertising in the Peget Soand Computer Uer ncwspaper. 3. The wages of employess who assermble computers from conponents. 4. Sales commissions paid to the concuny's salespevple. 5. The wages of the assembly shop's superviser. 6. The wages of the company's accoustant. Required: Classify these costs accerting to the various cest terms wed in the chapter. Carefully study the classification of each cost