1. How does the timing of recording expenses differ between product and period costs?
2. Describe the three inventory accounts used to record product costs.
3. What are the three categories of product costs that flow through the work-in-process inventory account? Describe each one.
4. When is the cost of goods sold account (often calledcost of sales) used, and how is the dollar amount recorded in this account determined?
5. How does a merchandising company income statement differ from a manufacturing company income statement?