Classify inventoriable and period costs
Classify each of Georgia Pacific”s costs as either inventoriable product costs or period costs. Georgia Pacific is manufacturer of paper, lumber, and building material products.
a. Depreciation on the gypsum board plant
b. Purchase of lumber to be cut into boards
c. Life insurance on CEO
d. Salaries of scientist studying ways to speed forest growth
e. Cost of new software to track inventory during production
f. Cost of electricity at one of Georgia Pacific”s paper mills
g. Salaries of Georgia Pacific”s to executives
h. Cost of chemical applied to lumber to inhibit mold from developing
i. Cost of TV ads promoting environmental awareness