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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

Respuesta :

Answer:

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