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Product costs are the direct expense of making the product ready for sale. Period costs are the indirect expenses for making sales.In the given question, as the company is involved in the wholesaling and retailing, the warehousing cost would differ in each type of sales. For wholesale, the warehousing cost is the period cost because the product has already been manufactured, and there is no importance of the warehouse after the manufacturing process.

For retail sales, warehousing cost is the product cost. The reason is that, for retailers, finished goods are the only inventory, and warehousing plays a role in making those inventory ready to sell.

A company may adopt any inventory valuation method. Under the LIFO method, a LIFO liquidation problem occurs, which leads to the earliest inventory in the pool remaining unsold. This unsold inventory may become obsolete but remains a part of the inventory and must be classified as such.

The primary purpose of the goods is to categorize goods into inventory or assets. In the given case, the airplane was acquired for resale purposes. So this is the primary reason. However, if the plane has been used for charter services, whether this service is temporary or for the long term must be determined.

This plane must be categorized under fixed assets for long-term purposes, and depreciation should be charged on it. For providing temporary services, the airplane is still considered an inventory.

Financing through trust cannot be recorded in the financial statement as there is no link between trust and the company. As the company is acquiring coal through trust, this can be a consignment sale.