Use the following table to classify each cost as a product cost or an SG&A cost. Also indicate whether the cost would be recorded as an asset or an expense. Assume product cost is defined by generally accepted accounting principles. The first item is shown as an example.

Cost Category                                             Product/SG&A                 Asset/Expense

Wages of production workers......................Product..................................Asset

Advertising costs

Promotion costs

Production supplies

Depreciation on administration building

Depreciation on manufacturing equipment

Research and development costs

Cost to set up manufacturing equipment

Utilities used in manufacturing facility

Cars for sales staff

Real estate tax levied on a factory

General office supplies

Raw materials used in the manufacturing process

Cost to rent office equipment