Langley, Inc. is the manufacturer of lawn care equipment. The company incurs the following costs while manufacturing edgers: (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. 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 transferred to an expense account ) on the income statement. On the income statement is subtracted from to determine gross profit. The are then subtracted to determine operating income