Exercise $1-3$ Classifying costs as product or period costs

Issac Aircams manufactures sophisticated spy cameras for remote$-$controlled military reconnaissance aircraft. It has approached a bank for a loan to finance its growth. The bank requires financial statements before approving the loan.

Required: Classify each cost listed below as either a product or a period cost for the purpose of preparing financial statements.

$\backslash$table$[[,$Costs,Product cost,Period cost$],[1,$Depreciation on salespersons' cars,,$],[2,\backslash$table$[[$Depreciation on chairs and tables in the factory$],[$unchroom$]],,],[3,$Rent on equipment used in the factory,,$],[4,\backslash$table$[[$Soap and paper towels used by factory workers at the$],[$end of a shift$]],,],[5,$Advertising costs,,$],[6,\backslash$table$[[$Workers$\text{'}$ compensation insurance for factory$],[$employees$]],,]]$