Loring Company incured the following costs last year:
Direct Materials
$216,000
Factory Rent
24,000
Direct Labor
120,000
Factory Utilities
6,300
Supervision in the factory
50,000
Indirect...
60.1K
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Accounting
Loring Company incured the following costs last year:
Direct Materials
$216,000
Factory Rent
24,000
Direct Labor
120,000
Factory Utilities
6,300
Supervision in the factory
50,000
Indirect labor in the factory
30,000
Depreciation on factory equipment
9,000
Sales commissions
27,000
Sales salaries
65,000
Advertising
37,000
Depreciation on the headquarters building
10,000
Salary of the corporate receptionist
30,000
Other administrative costs
175,000
Salary of the factory receptionist
28,000
Required:
1. Classify each of the costs using the following table format inexcel spread sheet. Be sure to total the amount in eachcolumn.
Example: Direct materials, $216,000.
2. What was the total product cost for last year?
3. What was the total period cost for last year?
4. If 30,000 units were produced last year, what was the unitproduct cost?
Answer & Explanation
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3.6 Ratings (326 Votes)
Product cost includes direct material cost direct labor cost and manufacturing overhead cost It involves all expenses that are related to manufacturing operations Period cost includes costs other than product costs Question 1 Question 2 Question 3 Amount Product cost or period
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