Question

Consider the following costs incurred in a recent period:Direct Materials $33,000Depreciation on Factory Equipment $12,000Factory Janitor's Salary $23,000Direct Labor $28,000Utilities for Factory $9,000Selling Expenses $16,000Production Supervisor's Salary $34,000Administrative Expenses $21,000What was the total amount of period costs listed above for the period?

Answer 1

Answer: $37,000

Step-by-step explanation:

Period costs are those costs that are not attributable to the production process so will mostly be administration expenses.

In the above, all expenses are related to the production whether directly or indirectly except selling expenses and admin expenses.

Period Costs = Selling Expenses + Admin expenses

= 16,000 + 21,000

= $37,000

Answer 2

$37,000

Step-by-step explanation:

The following costs were incurred in a recent period

Direct Materials $33,000

Depreciation on Factory Equipment $12,000

Factory Janitor's Salary $23,000

Direct Labor $28,000

Utilities for Factory $9,000

Selling Expenses $16,000

Production Supervisor's Salary $34,000

Administrative Expenses $21,000

Therefore, the total amount of period cost can be calculated as follows

Total amount of period costs = Selling expenses + administrative expenses

= $16,000 + $21,000

= $37,000

Hence the total amount of period costs for the above period is $37,000