Steuben Company Produces Dog Houses Wages Paid to Factory Machine Operators in Producing the Dog

Multiple Choice

Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: $\begin{array}{llr} \text { Rent on manufacturing facility} &\$250,000\\ \text {office manager's salary } &150,000\\ \text { Wages of factory machine operators} &110,000\\ \text {Depreciation on manufacturing equipment } &50,000\\ \text {Insurance and taxes on selling and administrative } &30,000\\ \text { offices } &\\ \text { Direct materials murchased and used } &170,000\end{array}$
Wages paid to factory machine operators in producing the dog houses should be categorized as:

A) a product cost and recorded in the inventory account
B) a period cost and recorded on the income statement
C) a product cost and recorded on the income statement
D) a period cost and recorded in the inventory account