Canine company reports the following costs and expenses in MAY. Factory utilitie

Question

Canine company reports the following costs and expenses in MAY.

Factory utilities

$ 16500

Depreciation on factory equipment

$ 12650

Depreciation on delivery trucks

$ 3800

Indirect factory labor

$ 48900

Indirect materials

$ 70800

Direct material used

$ 157600

Factory manager’s salary

$ 8000

Direct labor

$ 79100

Sales salaries

$ 51400

Property taxes on factory building

$ 2500

Repairs to office equipment

$ 1300

Factory reports

$ 2000

Advertising

$ 23000

Office supplies used

$ 2640

Instructions:

From the information, determine the total amount of:

( please : provide calculation formula not only the final answer)

Manufacturing overhead:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Product Cost

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Period Cost

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Factory utilities

$ 16500

Depreciation on factory equipment

$ 12650

Depreciation on delivery trucks

$ 3800

Indirect factory labor

$ 48900

Indirect materials

$ 70800

Direct material used

$ 157600

Factory manager’s salary

$ 8000

Direct labor

$ 79100

Sales salaries

$ 51400

Property taxes on factory building

$ 2500

Repairs to office equipment

$ 1300

Factory reports

$ 2000

Advertising

$ 23000

Office supplies used

$ 2640

Explanation / Answer

Product costs are costs that are involved in the acquiring or manufacturing of goods. For manufactured goods, these costs include expenditure of direct materials, direct labor along with manufacturing overhead

Period costs are the cost which are not an essential part of the manufacturing process. Therefore, period costs cannot be allocated to the products. The period costs are typically linked with the selling or general administration. Apart from the selling and general administrative expenses, most type of interest expense is period expense as well. The period costs are reported as expenses

So the costs is classified as under:

Period Costs

Manufacturing overhead is $161,350

Product Cost is Direct Material plus Direct labour plus Manufacturing overhead which is $398,050

Period Costs is $ 82,140

Factory utilities $16,500 Manufacturing Overhead Depreciation on factory equipment $12,650 Manufacturing Overhead Depreciation on delivery trucks $3,800 Period Costs Indirect factory labor $48,900 Manufacturing Overhead Indirect materials $70,800 Manufacturing Overhead Direct material used $157,600 Product Costs Factory manager’s salary $8,000 Manufacturing Overhead Direct labor $79,100 Product Costs Sales salaries $51,400 Period Costs Property taxes on factory building $2,500 Manufacturing Overhead Repairs to office equipment $1,300 Period Costs Factory reports $2,000 Manufacturing Overhead Advertising $23,000 Period Costs Office supplies used $2,640

Period Costs

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.