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Unformatted text preview: 3-22 and 3-253-22) Indicate whether each of the following costs is a product cost or a period cost.1.Transportation- in: Product cost2.Insurance on the office building: Period cost3.Office Supplies: Period cost4.Costs incurred to improve the quality of goods available for sale: Product cost5.Goods purchased for resale: Product cost6.Salaries of salespersons: Period cost7.Advertising costs: Period cost8.Transportation- out: Period cost9.Rent expense: Period cost10. Salary of the company president: Period cost3-25) Identify the events as asset source, asset use, asset exchange, or claims exchange.Purchased inventory costing $5,600 on account from smoot company under terms 2/10, n/30. (AS) Freight costs of $500 were paid. (AE)Returned $400 of the inventory that it had purchased because it was damaged in transit, freight company agreed to pay the return cost. (AU).Paid the amount due on its account s payable to Smoot Company within the cash discount period. (AU)....
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