For product costs associated with a particular product to be reported on the income statement:
A) The product must be sold.
B) The company must expect to sell the product during the next twelve months.
C) The product must be transferred to Finished Goods Inventory.
D) The product may be in any of the manufacturer's inventory accounts.
E) The product must still be in Work in Process Inventory.

Question

Quizplus · Accepted Answer

Product costs are only reported on the income statement when the product is sold. Costs incurred during the manufacturing process are recorded as inventory costs until the product is sold.

For Product Costs Associated with a Particular Product to Be