Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs:

Rent on manufacturing facility $ $250,000$

Office manager's salary $150,000$

Wages of factory machine operators $110,000$

Depreciation on manufacturing equipment $50,000$

Insurance and taxes on selling and administrative offices $30,000$

Direct materials purchased and used $170,000$

Wages paid to factory machine operators in producing the dog houses should be categorized as:

Multiple Choice

a product cost and recorded on the income statement

a period cost and recorded in the inventory account

a product cost and recorded in the inventory account

a period cost and recorded on the income statement