Answer:
Product Costs :
2. Rent on equipment used in the factory.
3. Lubricants used for machine maintenance.
5. Soap and paper towels used by factory workers at the end of a shift.
6. Factory supervisors salaries
7. Heat, water, and power consumed in the factory.
10. Workers compensation insurance for factory employees.
11. Depreciation on chairs and tables in the factory lunchroom.
15. The cost of packaging the company`s product.
Period Costs :
1. Depreciation on salespersons cars.
4. Salaries of personnel who work in the finished goods warehouse.
8. Materials used for boxing products for shipment overseas.
9. Advertising costs.
12. The wages of the receptionist in the administrative offices.
13. Cost of leasing the corporate jet used by the company`s executives.
14. The cost of renting rooms at a Florida resort for the annual sales conference.
Explanation:
<em>Product Costs</em> are Costs attached to Product and Included in Valuation.
<em>Period Costs</em> are Not Attached to Products and are expended in Income Statement during the Period in which they are incurred.
