Businesses incur various costs in selling goods and services. Each business must decide which costs are expenses of the period and which should be included in the cost of the inventory. The following table lists various types of businesses along with certain types of costs they incur:

Required
Fill in the table to indicate the correct accounting for each type of cost by placing an X in the appropriate column. For any costs that receive other treatment, explain what the appropriate treatment is for accountingpurposes.

Transcribed Image Text:

Accounting Treatment Expense of Inventory Other the Period Business Cost Treatment Retail shoe store Shoes for sale Grocery store Canned goods on the shelves Cleaning supplies Wooden frame supplies Frame shop Walk-in print shop Paper Copy machines Toner cartridges Frozen food China and silverware Restaurant food