1.

Which of the following describes the flow of product costs in a manufacturing company?

Product costs are never expensed.

Product cost are first accumulated in an expense account (Cost of Goods Sold) and then transferred to an asset account (Inventory) When the goods are sold.

Product costs are first accumulated in an asset account (Inventory) and then transferred to an expense account (Cost of Goods Sold) when the products are sold.

Product costs are recorded in an expense account (Cost of Goods Sold) as the goods are being manufactured.

2.

Brock Company makes candy. During the most recent accounting period Brock paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Brock started and completed 10,000 units of Candy of which 8,000 were sold. Based on this information Brock would recognize which of the following amounts of Cost of Goods Sold expense on its income statement? O $7200 O $9.000. O None of the above. $4,000 References eBook & Resources Multiple Choice Learning Objective: 01-02 ldentify the cost of manufacturing a product and show how these costs affect financial statements. Ask your instructora question Previous attempt You did not receive full credit for this question in a previous attempt 2.00 points Brock Company makes candy. During the most recent accounting period Brock paid $3,000 for raw materials, $4,000 for labor, and$2,000 for overhead costs that were incurred to make candy. Brock started and completed 10,000 units of candy of which 8,000 were sold. Based on this information the balance in the inventory account on rock's balance sheet would be $2,000 O None of the above O $1.800 $9000. Required information