You ahve been given a summer job as an Intern at Utah Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth.

The bank requires financial statements before approving such a loan. You have been asked to help prepare classification of the following list of costs:

1. Depreciation on salespersons’ cars

2. Rent on equipment used in the factory

3. Lubricants used for machine maintenance

4. Salaries of personnel who work in the finished goods warehouse

5. Soap and paper towels used by factory workers at the end of a shift

6. Factory supervisors’ salaries

7. Heat, water, and power consumed in the factory

8. Materials used for boxing products for shipment overseas (units are not normally boxed)

9. Advertising costs

10. Workers’ compensation insurance for factory employees

11. Depreciation on chairs and tables in the factory lunchroom

12. The wages of the receptionist in the administrative offices

13. Cost of leasing the corporate jet used by the company’s executives

14. The cost of renting rooms at a Florida resourt for the annual sales conference

15. The cost of packaging the company’s product

Classify the above costs as either product costs or period costs.