Classification of Costs The following costs were taken from the accounting records of the
Barnwell Manufacturing Company:
1. State income taxes
2. Insurance on the manufacturing facilities
3. Supplies used in manufacturing
4. Wages for employees in the assembly department
5. Wages for employees who deliver the product to customers
6. Interest on notes payable
7. Materials used in the production process
8. Rent for the sales outlet in Sacramento
9. Electricity for manufacturing equipment
10. Depreciation expense on delivery trucks
11. Wages for the sales staff
12. Factory supervisors’ salaries
13. Company president’s salary
14. Advertising expense
Classify each item as either a product cost or a period cost. Also, classify all product costs as direct or indirect, assuming that the cost object is each unit of product manufactured.