(Classifying period and product costs, LO 5) Oxbow Toy Ltd. (Oxbow) develops, manufactures, markets, and distributes a broad range of toys and games for children from newborns to teenagers. The principal markets for Oxbow’s products are Canada, the United States, and Australia, where Oxbow markets and distributes both company-developed and licensed products. In addition to sales in these countries, Oxbow’s products are marketed in more than 50 countries worldwide. For each of the costs described below, state whether you would treat the cost as a product cost or moro F laa op a period cost. Explain your choices.

. Plastic, wood, metal and other materials that are used to produce toys.

. Commissions paid to salespeople who sell toys to distributors and retailers.

Salaries paid to head office staff and senior executives.

. Electricity and other utilities used in the manufacturing plant.

Amortization of equipment used to manufacture toys.

Amounts paid to trucking companies for delivering toys to customers.

. Amounts paid to research and develop new toys.

. Television and print advertising to promote one of Oxbow Toy Ltd’s toys.

Television and print advertising to promote the entire line of Oxbow Toy Ltd.s toys.