Period costs for a manufacturing company, such as selling and administrative expenses, are recorded directly to Work In Process Inventory when they are incurred.

Question

Quizplus · Accepted Answer

Period costs, such as selling and administrative expenses, are not part of the manufacturing process and should not be recorded in Work In Process Inventory. They are expensed as incurred and reported on the income statement.

Period Costs for a Manufacturing Company, Such as Selling and Administrative