The cost of an inventory item is released to the income statement as an:

asset when the product is purchased $($or becomes worthless or is lost or stolen$).$

asset when the product is sold $($or becomes worthless or is lost or stolen$).$

expense winen the product is purchased $($or becomes worthless or is lost or stolen$).$

expense when the product is sold $($or becomes worthless or is lost or stolen$).$