During the month of May, 4,000 metal towel rails were produced and 3,500 were sold. There had been none in store at the start of the month. There was no inventory (stock) of raw materials at either the start or end of the period. Costs incurred during May in respect of towel rails were as follows:

(a) Classify the list of costs set out above, into product costs and period costs.
(b) Explain how you would value inventory (stock) held at the end of the month?

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Metal piping 12,000 Wages to welders and painters Supplies for welding Advertising campaign Production manager's salary 9,000 1,400 2,000 1,800 Accounts department computer costs for dealing with production records 1,200