Trak Corporation incurred the following costs while manufacturing its bicycles.
Bicycle components
|
$100,000 |
Advertising expense |
$45,000 |
| Depreciation on plant |
60,000 |
Property taxes on plant |
14,000 |
| Property taxes on store |
7,500 |
Delivery expense |
21,000 |
| Labor costs of assembly-line workers |
110,000 |
Sales commissions |
35,000 |
| Factory supplies used |
13,000 |
Salaries paid to sales clerks |
50,000 |
Explain the basic difference in accounting for product costs and period costs.