Identify each of the items shown in the left column of the following table as being an upstream, a midstream, or a downstream cost by placing an X in the one of the columns to the right of the items column. The first item is shown as an example.
Item Upstream Midstream Downstream
Direct materials .........................................................X
Research and development
Product design
Manufacturing overhead
Sales salaries
Cost of delivering merchandise to customers
Cost to create a copyright
Salaries of product engineers
Salaries of production line workers
Direct labor
Cost to heating the manufacturing plant
Advertising expenses
Patent filing fees
Salary of company president
Depreciation on manufacturing equipment
Depreciation on office equipment