The following is a list of costs incurred by several businesses:

a. Packing supplies for products sold.

b. Tires for an automobile manufacturer.

c. Costs for television advertisement.

d. Disk drives for a microcomputer manufacturer.

e. Executive bonus for vice president of marketing.

f. Seed for grain farmer.

g. Wages of a machine operator on the production line.

h. Wages of controller’s secretary.

i. Factory operating supplies.

j. First-aid supplies for factory workers.

k. Depreciation of factory equipment.

l. Salary of quality control supervisor.

m. Sales commissions.

n. Maintenance and repair costs for factory equipment.

o. Cost of hogs for meat processor.

p. Health insurance premiums paid for factory workers.

q. Lumber used by furniture manufacturer.

r. Paper used by commercial printer.

s. Hourly wages of warehouse laborers.

t. Paper used by Computer Department in processing various managerial reports.

u. Costs of operating a research laboratory.

v. Entertainment expenses for sales representatives.

w. Cost of telephone operators for a toll-free hotline to help customers operate products.

x. Protective glasses for factory machine operators.

Instructions

Classify each of the preceding costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer. Place an “X” in the appropriate column.