Classify the following costs as either product (inventoriable)costs or period (n

Question

Classify the following costs as either product (inventoriable)costs or period (noninventoriable) costs in a manufacturingcompany: 1.Depreciation on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for maintenance of machines 4. Salaries of finished goods warehouse personnel 5. Soap and paper towels used by factory workers 6. Factory supervisors' salaries 7. Heat, water, and power consumed in the factory 8. Materials used for boxing products for shipment overseas(units are not normallly boxed) 9. Advertising costs 10. Worker's compensation insurance on factory employees 11. Depreciation on chairs and tables in the factorylunchroom 12. The wages of the receptionist in the administrativeoffices 13.Lease cost of the corporate jet used by the company'sexecutives 14. Rent on rooms at a Florida resort for the annual salesconference 15. Attractively designed box for packaging the company'sproduct- breakfast cereal Classify the following costs as either product (inventoriable)costs or period (noninventoriable) costs in a manufacturingcompany: 1.Depreciation on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for maintenance of machines 4. Salaries of finished goods warehouse personnel 5. Soap and paper towels used by factory workers 6. Factory supervisors' salaries 7. Heat, water, and power consumed in the factory 8. Materials used for boxing products for shipment overseas(units are not normallly boxed) 9. Advertising costs 10. Worker's compensation insurance on factory employees 11. Depreciation on chairs and tables in the factorylunchroom 12. The wages of the receptionist in the administrativeoffices 13.Lease cost of the corporate jet used by the company'sexecutives 14. Rent on rooms at a Florida resort for the annual salesconference 15. Attractively designed box for packaging the company'sproduct- breakfast cereal

Explanation / Answer

1.Depreciation on salesperson's cars       Noninventoriable       Noninventoriable 2. Rent on equipment used in the factory       Inventoriable       Inventoriable 3. Lubricants used for maintenance ofmachines       Noninventoriable       Noninventoriable 4. Salaries of finished goods warehousepersonnel       Noninventoriable       Noninventoriable 5. Soap and paper towels used by factoryworkers       Inventoriable       Inventoriable 6. Factory supervisors' salaries       Noninventoriable       Noninventoriable 7. Heat, water, and power consumed in thefactory       Noninventoriable       Noninventoriable 8. Materials used for boxing products forshipment overseas (units are not normallly boxed)       Inventoriable       Inventoriable 9. Advertising costs       Noninventoriable       Noninventoriable 10. Worker's compensation insurance on factoryemployees          Noninventoriable          Noninventoriable 11. Depreciation on chairs and tables in thefactory lunchroom          Noninventoriable          Noninventoriable 12. The wages of the receptionist in theadministrative offices          Noninventoriable          Noninventoriable 13.Lease cost of the corporate jet used by thecompany's executives          Noninventoriable          Noninventoriable 14. Rent on rooms at a Florida resort for theannual sales conference          Inventoriable          Inventoriable 15. Attractively designed box for packaging thecompany's product- breakfast cereal          Inventoriable

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