Classifying costs The following is a list of costs that were incurred inthe production and sale of large commercial airplanes: a. Salary of chief complianceofficer of company b. Power used by paintingequipment c. Instrument panel installedin the airplane cockpit d. Annual bonus paid to thechief operating officer of the company e. Turbo-charged airplaneengine f. Interior trimmaterial used throughout the airplane cabin g. Cost of normal scrap fromproduction of airplane body h. Hourly wages of employeesthat assemble the airplane i. Salary of themarketing department personnel j. Cost of paving theheadquarters employee parking lot k. Cost of electrical wiringthroughout the airplane l. Cost ofelectronic guidance system installed in the airplane cockpit m. Salary of plant manager n. Cost of miniature replicasof the airplane used to promote and market the airplane o. Human resources departmentcosts for the year p. Metal used for producingthe airplane body q. Annual fee to a celebrityto promote the aircraft r. Hydraulic pumps usedin the airplane’s flight control system s. Yearly cost of themaintenance contract for robotic equipment t. Prebuilt leatherseats installed in the first-class cabin u. Depreciation on factoryequipment v. Special advertisingcampaign in Aviation Worldmagazine w. Oil to lubricate factoryequipment x. Masks for use by paintersin painting the airplane body y. Decals for cockpit door,the cost of which is immaterial to the cost of the finalproduct z. Salary of chief financialofficer Instructions Classify each cost as either a product cost or aperiod cost. Indicate whether each product cost is a directmaterials cost, a direct labor cost, or a factory overhead cost.Indicate whether each period cost is a selling expense or anadministrative expense. Use the following tabular headings for youranswer, placing an "x" in the appropriate column
Classifying costs
The following is a list of costs that were incurred inthe production and sale of large commercial airplanes:
a. Salary of chief complianceofficer of company
b. Power used by paintingequipment
c. Instrument panel installedin the airplane cockpit
d. Annual bonus paid to thechief operating officer of the company
e. Turbo-charged airplaneengine
f. Interior trimmaterial used throughout the airplane cabin
g. Cost of normal scrap fromproduction of airplane body
h. Hourly wages of employeesthat assemble the airplane
i. Salary of themarketing department personnel
j. Cost of paving theheadquarters employee parking lot
k. Cost of electrical wiringthroughout the airplane
l. Cost ofelectronic guidance system installed in the airplane cockpit
m. Salary of plant manager
n. Cost of miniature replicasof the airplane used to promote and market the airplane
o. Human resources departmentcosts for the year
p. Metal used for producingthe airplane body
q. Annual fee to a celebrityto promote the aircraft
r. Hydraulic pumps usedin the airplane’s flight control system
s. Yearly cost of themaintenance contract for robotic equipment
t. Prebuilt leatherseats installed in the first-class cabin
u. Depreciation on factoryequipment
v. Special advertisingcampaign in Aviation Worldmagazine
w. Oil to lubricate factoryequipment
x. Masks for use by paintersin painting the airplane body
y. Decals for cockpit door,the cost of which is immaterial to the cost of the finalproduct
z. Salary of chief financialofficer
Instructions
Classify each cost as either a product cost or aperiod cost. Indicate whether each product cost is a directmaterials cost, a direct labor cost, or a factory overhead cost.Indicate whether each period cost is a selling expense or anadministrative expense. Use the following tabular headings for youranswer, placing an "x" in the appropriate column
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