These are things I've read and heard, but you can never be 100% sure that the sources are right., if the source isn't Michael himself. An example: Jermaine said MJ's favourite colors were gold and red, Taraborrelli said in his book that it was yellow, so who are you going to believe...
GAAP, however, generally requires that these costs be expensed when incurred because it is difficult determine their future benefits and relation to future revenues (the matching principle). Unless there are large amounts of organizational expenses, they are usually expensed for GAAP and financial reporting purposes.
As an item is built in the manufacturing process, the costs from components, conversion costs, and overhead conversion costs are accumulated in Work in Process (WIP). The end item's actual cost is the net cost in WIP for the production ID or production schedule. When the production ID is completed and closed for accounting and the items are put away into inventory, then the WIP costs are moved to finished goods. In other words, the net debit to WIP is the actual cost.