Classify costs incurred by a dairy processing company (Learning Objective 4) Each of the following costs pertains to DairyPlains, a dairy processing company. Classify each of the company’s costs as a period cost or an inventoriable product cost. Further classify inventoriable product costs as direct material (DM), direct labor (DL), or manufacturing overhead (MOH).

Cost 1. Cost of milk purchased from local dairy farmers 2. Lubricants used in running bottling machines 3. Depreciation on refrigerated trucks used to collect raw milk from local dairy farmers 4. Property tax on dairy processing plant 5. Television advertisements for Dairy Plains' products 6. Gasoline used to operate refrigerated trucks delivering finished dairy products to grocery stores 7. Company president's annual bonus 8. Plastic gallon containers in which milk is packaged 9. Depreciation on marketing department's computers 10. Wages and salaries paid to machine operators at dairy processing plant 11. Research and development on improving milk pasteurization process Period Cost or Inventoriable Product Cost? DM, DL, or MOH?