Nutini Shoes Company Income Statement For the Month Ending August 31 Sales Less operating expenses: $450,000 Direct labor cost Raw materials purchased Manufacturing overhead Selling/ admin. expenses $70,000 165,000 85,000 142,000 462,000 Net operating loss Inventory balances: Raw Materials Work in process Finished goods August 1 August 31 $8,000 $13,000 16,000 $21,000 $40,000 $60,000 That's not right! Something is wrong. Can you correct this income statement? Nutini Shoes Company Income Statement Raw material used For the Month Ending August 31 Cost of Goods Manufactured Cost of Goods Sold Product and Period Costs svSU 1. Identify the following costs as product or period costs by placing on "X": Product Period Oil for the factory machines Direct material Commissions on sales Rent of office space Direct labor Insurance on the administration building Repairs on factory machine Power for the factory Indirect material for factory Customer relations Distribution costs (shipping) 2. What is the difference between product and period costs? Why do we care? 3. Can you provide other name for the term product costs