Maureen Shelley is controller of Optus Communications. Optus manufactures cell phones. She has prepared a list of typical costs incurred by the business. Review the list and determine whether each cost is a product cost or period cost. For product costs, further classify the cost as direct material, direct labor, or factory overhead.
Direct Material
Product Direct Labor
Period Factory Overhead
Depreciation of machinery used in factory
Commissions paid to sales force
Annual inspection of factory fire extinguishers
Plastic used to mold phones
Maureen's salary
Reprogramming of automated assembly line
Salary of phone touch screen installers
Depreciation of office computers
Computer chips installed in phones
Pads used to buff and shine touch screens
Rental of mold for newest model phone
Landscape service for corporate office
Salary of quality control inspectors
Shipping costs for units sold