Answer: a. Standard packaging materials used to package individual units of product for sale (for example, cereal boxes in which the cereal is packaged) = Inventoriable product cost. Direct material.
b. Lease payment on administrative headquarters = Period cost.
c. Telephone bills relating to the customer service call center = Period cost.
d. Property insurance- 40% of building is used for sales and administration = period cost.
Property insurance- 60% of building is used for manufacturinge = Inventoriable cost. Manufacturing overhead.
e. Wages and benefits paid to assembly-line workers in the manufacturing plant = Inventoriable cost Direct Labor.
f. Depreciation on automated production equipment = Inventoriable cost. Manufacturing overhead.
g. Salaries paid to quality control inspectors in the plant = Inventoriable cost. Manufacturing overhead.
h. Repairs and maintenance on factory equipment = Inventoriable cost. Manufacturing overhead.
