a Identify which of the following transactions and events are product costs and which are period
costs:
Office fire insurance.
Cost of electric power.
Rental charges of warehouses.
Costs of basic raw materials used in production.
Depreciation of electrical equipment in the plant.
Depreciation of the furniture in the office.
Sales incentives paid to the sales personnel.
Inspection costs of raw materials.
Direct overhead costs.
Costs of packing materials.
b Identify which of the following costs are fixed, which are variable, and which are mixed.
Maintenance costs of vehicles used in supplying
goods.
Direct labor cost.
Wages paid to machine operators.
Depreciation of factory buildings.
Salaries paid to quality control inspectors.
Advertising expenses.
Costs of direct materials.
Employee fidelity insurance.
Cost of electric power.
Sales taxes.
