The Sharpe Company reports the following information for 2015: 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 Determine period costs for 2015.

Question

Business

Mark Marsh

29 June, 05:39

The Sharpe Company reports the following information for 2015: 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 Determine period costs for 2015.

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Kristian Davenport · Answer 1

Period Cost for 2015 : $35,000

Explanation:

M 7,300

DL 10,500

Dep fac 4,700

Indirect labor 5,900

indirect materials 1,200

factory rent 4,200

fac utilities 1,200

total overhead 17,200

Cost : DM + DL + FO

7,300 + 10,500 + 17,200 = 35,000

Notice: The sales salaries and office salaries are expense, their are not included in the unit cost, so are not period cost. They are expenses of the period.