Classify each of Ainsworth Lumber Company Ltd.’s costs as either inventoriable product costs or period costs. Ainsworth Lumber Company Ltd. is a manufacturer of stud lumber, veneer, specialty panels, oriented strand board, and wood chips in 100 Mile
House, BC.
a. Depreciation on the veneer plant
b. Purchase of lumber to be cut into boards
c. Life insurance on CEO
d. Salaries of scientists studying ways to speed forest growth
e. Cost of new software to track inventory during production
f. Cost of electricity at one of Ainsworth’s paper mills
g. Salaries of Ainsworth’s top executives
h. Cost of chemical applied to lumber to inhibit mould from developing
i. Cost of TV ads promoting environmental awareness