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12 May, 04:02

The Darwin Company reports the following information:

Sales $76,500

Direct materials used 7,300

Depreciation on factory equipment 4,700

Indirect labor 5,900

Direct labor 10,500

Factory rent 4,200

Factory utilities 1,200

Sales salaries expense 15,600

Office salaries expense 8,900

Indirect materials 1,200

Period costs are

a. $30,300

b. $29,200

c. $24,500

d. $35,000

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Answers (1)
  1. 12 May, 06:23
    0
    c. $24,500

    Explanation:

    Period cost will be those which are not capitalized under an asset account. In this case the materials, direct labor and factory overhead component will be capitalizesd through inventory thus, are not period cost.

    While the sales and office salaries will not be capitalized against any asset account, thus: period cost.

    Sales salaries expense 15,600

    Office salaries expense 8,900

    Total period cost: 24,500
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