Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), KitchenAid (a manufacturing-sector company), and HughesNet (a service-sector company): a. Cost of phones and computers available for sale in Best Buy’s electronics department b. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant c. Depreciation on HughesNet satellite equipment used to provide its services d. Electricity used to provide lighting for Best Buy’s store aisles e. Wages for personnel responsible for quality testing of the KitchenAid products during the assembly process f. Salaries of Best Buy’s marketing personnel planning local-newspaper advertising campaigns g. Perrier mineral water purchased by HughesNet for consumption by its software engineers h. Salaries of HughesNet area sales managers i. Depreciation on vehicles used to transport KitchenAid products to retail stores *Classify each of the cost items (a–i) as an inventoriable cost or a period cost. Explain your answers.

Question

Each of the following cost items pertains to one of these companies: Best Buy (a merchandising-sector company), KitchenAid (a manufacturing-sector company), and HughesNet (a service-sector company):

a. Cost of phones and computers available for sale in Best Buy’s electronics department

b. Electricity used to provide lighting for assembly-line workers at a KitchenAid manufacturing plant

c. Depreciation on HughesNet satellite equipment used to provide its services

d. Electricity used to provide lighting for Best Buy’s store aisles

e. Wages for personnel responsible for quality testing of the KitchenAid products during the assembly process

f. Salaries of Best Buy’s marketing personnel planning local-newspaper advertising campaigns

g. Perrier mineral water purchased by HughesNet for consumption by its software engineers

h. Salaries of HughesNet area sales managers i. Depreciation on vehicles used to transport KitchenAid products to retail stores

*Classify each of the cost items (a–i) as an inventoriable cost or a period cost. Explain your answers.

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