(Click the icon to view the costs.) Requirement 1. Describe the difference between period costs and product costs. 2. Classify Langley's costs as period costs or product costs. If the costs are product costs, further classify them as direct materials, direct labor, or manufacturing overhead. Requirement 1. Describe the difference between period costs and product costs. are operating costs that are expensed in the accounting period in which they are incurred. V are all costs of a product that requires companies to treat as an asset for external financial reporting. These costs are recorded as an asset (inventory) on the balance sheet until the asset is sold. The cost is then v) on the income statement. transferred to an expense account On the income statement, is subtracted from to determine gross profit. The are then subtracted to determine operating income Requirement 2. Classify Lawlor's costs as period costs or product costs. If the costs are product costs, further classify as direct materials, direct lab i More Info Handle and shaft of edger V Motor of edger Factory labor for workers assembling edgers Lubricant used on bearings in the edger (not traced to the product) Glue to hold housing together Plant janitorial wages Handle and shaft of edger Motor of edger Factory labor for workers assembling edgers Lubricant used on bearings in the edger (not traced to the product) Glue to hold the housing together Plant janitorial wages Depreciation on factory equipment . Renton plant Sales commissions Administrative salaries Plant utilities Shipping costs to deliver finished edgers to customers V Narrariation on factor asuinment Click to select your answer(s). Plant janitorial wages Depreciation on factory equipment Rent on plant Sales commissions Administrative salaries Plant utilities Shipping costs to deliver finished edgers to customers