Answered: Question 6 Product costs that have…

Question 6 Product costs that have become expenses can be found in: O selling expenses. cost of goods sold. administrative expenses. period costs. « Previous

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 4DQ: What are the components of cost of goods available for sale and cost of goods sold?

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Expert Solution

Step 1 Introduction

The product cost is the cost including in the manufacturing process of the production. Example, direct labor cost, direct materials, etc.

The period cost is the total cost that is to be expensed in the period, it is incurred. Example, selling and administrative expenses, etc.

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