Question

Product costs a.appear only on the income statement b.appear only on the balance sheet c.appear on both the income statement and balance sheet d.are expensed as costs are incurred for direct labor, direct materials, and factory overhead

Answer 1

Answer:

c.appear on both the income statement and balance sheet

Explanation:

The cost of the product is the cost that is incurred in producing the cost. This consists of direct products used, direct labor costs and the overhead expense of production i.e manufacturing overhead. This includes all expense types i.e. indirect and direct costs.

It is to be shown on the asset side of the balance sheet and on the income statement as a cost of goods sold.