Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate. Unlike service companies, manufacturing companies have three inventory accounts: raw materials, work-in-process, and finished goods. Manufacturing costs can be classified into three categories: direct material, labor, and overhead. Another method to classify costs is as product and period costs. Product costs, like raw material, can be traced directly to the product. Period costs are non-manufacturing costs, such as administrative and insurance costs