National Express reports the following costs and expenses in June 2017 for its d

Question

National Express reports the following costs and expenses in June 2017 for its delivery service.

Determine the total amount of (a) delivery service (product) costs and (b) period costs.

Indirect materials $7,100 Drivers’ salaries $16,300 Depreciation on delivery equipment 11,900 Advertising 5,500 Dispatcher’s salary 5,810 Delivery equipment repairs 310 Property taxes on office building 950 Office supplies 700 CEO’s salary 12,100 Office utilities 1,100 Gas and oil for delivery trucks 2,700 Repairs on office equipment 210

Explanation / Answer

a) Delivery service (product) costs:

b) Period costs:

Indirect materials $7,100 Depreciation on delivery equipment $11,900 Dispatcher's salary $5,810 Gas and oil for delivery trucks $2,700 Drivers' salaries $16,300 Delivery equipment repairs $310 Total $44,120

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