XYZ Company recorded the following information related to their inventory accoun
ID: 2415122 • Letter: X
Question
XYZ Company recorded the following information related to their inventory accounts for 2016:
January 1, 2016 December 31, 2016 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 22,000 ?
XYZ Company's accounting records for 2016 provided the following information:
Direct materials purchased .............................. $124,000
Depreciation, factory equipment ......................... 30,000
Sales revenue ........................................... 513,400
Utilities (60% for factory; 40% for office building) .... 18,000
Sales commissions ....................................... 65,000
Indirect materials ...................................... 25,000
Depreciation, office equipment .......................... 17,000
Rent, factory building .................................. 70,000
Gross profit ............................................ 83,600
Direct labor ............................................ 97,000
Advertising ............................................. 61,000
Production supervisor's salary .......................... 76,000
Calculate XYZ Company's total period costs for 2016. Do not use decimals in your answer.
Explanation / Answer
Computation of the XYZ company's total period costs for 2016.We have,
Note1: Period costs are not inculded manufacturing overhead like, production supervisor's salary,Rent,factory building,Indirect materials,utilities used for factory and prime costs.
Particulars Amount($) Advertising 61,000 Depreciation, office equipment 17,000 Utilities( 40%) 7,200 Sales Commissions 65,000 Total Period costs $ 150,200Related Questions
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