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: $\begin{array}{lrr} \text { Rent on manufacturing facility} &\$250,000\\ \text { Office manager's salary } &150,000\\ \text { Wages of factory machine operator's } &110,000\\ \text {Depreciation on manufacturing equipment } &50,000\\ \text { Insurance and taxes on selling and administrative offices} &30,000\\ \text {Direct materials purchased and used } &170,000\\\end{array}$

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