Inventory Costs in Various Businesses 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 accounting purposes.

Transcribed Image Text:

Business Retail shoe store Grocery store Frame shop Types of Costs Shoes for sale Shoe boxes Advertising signs Canned goods on the shelves Produce Cleaning supplies Cash registers Wooden frame supplies Nails Glass Walk-in print shop Paper Copy machines Toner cartridges Restaurant Frozen food China and silverware Prepared food Spices Expense of the Period Accounting Treatment Inventory Cost Other Treatment