Question

White Company has the following costs for the year: Direct Materials Used $120,000 Direct Labor Incurred 60,000 Manufacturing Overhead Incurred 10,000 Selling Expenses 50,000 Administrative Expenses 20,000 What is the amount of period costs for the year?

Answer 1

amount of period costs is 70000

Step-by-step explanation:

given data

Direct Materials = $120,000

Direct Labor Incurred = 60000

Overhead Incurred = 10000

Selling Expenses=50000

Administrative Expenses = 20000

to find out

amount of period costs

solution

we know here that period costs for year is the sum of Selling Expenses and the Administrative Expenses in a year

so it will be

amount of period costs = Selling Expenses + Administrative Expenses ...........1

put here both value in equation 1

amount of period costs = 50000 + 20000

so amount of period costs = 70000