Burgess Company incurred product costs of $50,000 during the period when no units were sold.No product costs will be reported on the company's income statement for the period.

Question

Quizplus · Accepted Answer

Product costs are only expensed on the income statement when a company sells products. Since no units were sold during the period, the product costs will not be reported on the income statement. However, the product costs will be reported on the company's balance sheet as inventory.

Burgess Company Incurred Product Costs of $50,000 During the Period