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Q1: The following information relates to ALFAHD Corporation (AMOUNTS IN SAUDI RI

ID: 2335868 • Letter: Q

Question

Q1: The following information relates to ALFAHD Corporation (AMOUNTS IN SAUDI RIYAL) 4 MARKS

Advertising Costs

SR12,470

Administrative Salaries

28,700

Delivery Vehicle Depreciation

1,000

Factory Repair and Maintenance

910

Indirect Labor

11,700

Indirect Materials

9,360

Manufacturing Equipment Depreciation

2,080

Office Rent

42,300

President's Salary

60,000

Sales Revenue

450,000

Sales Salary

38,000


Required:

How much were ALFAHD period costs and product costs?

Please Tell me the answer with the equation.

Advertising Costs

SR12,470

Administrative Salaries

28,700

Delivery Vehicle Depreciation

1,000

Factory Repair and Maintenance

910

Indirect Labor

11,700

Indirect Materials

9,360

Manufacturing Equipment Depreciation

2,080

Office Rent

42,300

President's Salary

60,000

Sales Revenue

450,000

Sales Salary

38,000

Explanation / Answer

Period cost includes all selling and administrative expenese So period cost is :

Product cost includes all direct cost and indirect cost related to factory.

Factory Repair and Maintenance

Advertising Costs 12470 Administrative Salaries 28700 Delivery Vehicle Depreciation 1000 Office Rent 42300 Sales Salary 38000 President's salary 60000 Total period cost $182470