$2-28(20-30$ min.$)$ Inventoriable costs versus period costs.

Each of the following cost items pertains to one of these companies: Star Market $($a merchandisingsector company$),$ Maytag $($a manufacturing$-$sector company$),$ and Yahoo! $($a service$-$sector company$)$:

a$.$ Cost of lettuce and tomatoes on sale in Star Market's produce department

b$.$ Electricity used to provide lighting for assembly$-$line workers at a Maytag refrigeratorassembly plant

c$.$ Depreciation on Yahoo!$\text{'}$s computer equipment used to update its Website

d$.$ Electricity used to provide lighting for Star Market's store aisles

e$.$ Depreciation on Maytag's computer equipment used for quality testing of refrigerator components during the assembly process

f$.$ Salaries of Star Market's marketing personnel planning local$-$newspaper advertising campaigns

g$.$ Perrier mineral water purchased by Yahoo! for consumption by its software engineers

h$.$ Salaries of Yahoo!$\text{'}$s marketing personnel selling advertising

i$.$ Depreciation on vehicles used to transport Maytag refrigerators to retail stores

Required:

Distinguish between manufacturing$-,$ merchandising$-,$ and service$-$sector companies.

Distinguish between inventoriable costs and period costs.

Classify each of the cost items $(a-h)$ as an inventoriable cost or a period cost. Explain your answers.