Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Total Period Costs

All expenses incurred by a business that are not directly tied to the production of goods or services within a specific period.

Cost of Work

The total expense incurred in producing goods or services, including materials, labor, and overhead costs.

Cost of Goods Manufactured

The total cost incurred to manufacture products, including direct labor, direct materials, and manufacturing overhead, during a specific period.