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.

Question

Quizplus · Accepted Answer

Product costs, including the cost of goods sold, are initially reported on the balance sheet as inventory. Once the goods are sold, the cost is transferred to the income statement as cost of goods sold. Therefore, product costs are reported on the balance sheet before goods are sold and on the income statement after goods are sold.

Product Costs Are Reported