Identify which of the following transactions and events are product costs and which are period…

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Classifying Costs

Identify which of the following transactions and events are product costs and which are period costs:

• Storage and material handling costs for raw materials.

• Gains or losses on the disposal of factory equipment.

• Lubricants for machinery and equipment used in production.

• Depreciation of a factory building.

• Depreciation of manufacturing equipment.

• Depreciation of the company president’s automobile.

• Leasehold costs for land on which factory buildings stand.

• Inspection costs of finished goods.

• Direct labor cost.

• Raw-materials cost.

• Advertising expenses. 

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