For manufacturing company, explain the difference between a product and a period cost, including how they are handled in financial statements.

B

For a manufacturing company the difference between a product and a period cost is that the product cost is a variable cost and the

period cost is a direct cost.

During the year, Boeing materials handlers incorrectly recorded one materials requisition $($ $$15,000)$ to Job A$-1$ instead of B$-52.$ Job A$-1$ was sold during

the year, but Job B$-52$ was still being completed at the end of the year. How did this error in recording direct labor impact the financial statements of

Boeing?