Product costs are reported:
A) only on the balance sheet.
B) only on the income statement.
C) on the balance sheet before goods are sold, and on the income statement after goods are sold.
D) on the income statement before goods are sold, and on the balance sheet after goods are solD.
Product costs are counted as inventory (an asset) until the product is sold, at which point they are reported as Cost of Goods Sold on the income statement.

Question

Quizplus · Accepted Answer

Product costs are reported on the balance sheet as inventory until the goods are sold. After the sale, the product costs are reported on the income statement as Cost of Goods Sold.

Product Costs Are Reported