Costs that are capitalized as inventory during completion of products are called:Multiple ChoiceProduct costs.Selling expenses.Period costs.Administrative costs.General costs.

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:Multiple ChoiceDirect labor versus indirect labor.Financial versus managerial.Service versus manufacturing.Direct materials versus indirect materials.Product versus period.

Fill in the Blank QuestionFill in the blank question.Costs incurred to produce or purchase two or more products at the same time are called costs.

Amounts credited to the Work in Process inventory account may best be described as:Multiple ChoiceThe cost of finished goods manufactured.Total manufacturing costs charged to production.The cost of goods sold.Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead.

Costs accounted for initially as inventory when produced and later as expense when sold are:Multiple choice question.direct costsindirect costsperiod costsproduct costs

The inventory account used for the costs of items that are in production and being manufactured is known as:Multiple choice question.Work in process inventoryCost of goods manufacturedRaw materials inventoryFinished goods inventory