Use the following table to classify each cost as a product cost or as an SG&A cost. Also indicate whether the cost would be recorded as an asset or an expense. Assume that product costs are defined in accordance with GAAP. The first cost item is shown as an example.
Cost Category Product/SG&A Asset/Expense
Cost of merchandise shipped to customers...................SG&A..................Expense
Depreciation on vehicles used by salespeople
Wages of administrative building security guards
Supplies used in the plant manager's office
Purchase of computers for the accounting department
Depreciation on computers used in factory
Natural gas used in the factory
Cost of television commercials
Wages of factory workers
Paper and ink cartridges used in the cashier's office
Raw material used to make products
Lubricant used to maintain factory equipment
Cost of a delivery truck
Cash dividend to stockholders