ABC Company\'s accounting records for 2019 indicated the following costs had bee
ID: 2430146 • Letter: A
Question
ABC Company's accounting records for 2019 indicated the following costs had been incurred:
Direct materials purchased ................... $124,000
Depreciation factory equipment .............. 30,000
Direct labor ................................. 97,000
Utilities..................................... 18,000
Sales commissions............................. 65,000
Indirect materials............................ 25,000
Depreciation, office equipment ............... 17,000
Production supervisor's salary ............... 76,000
Advertising................................... 61,000
60% of the utilities relate to the factory while 40% of the utilities relate to the general office building. Calculate the total period costs incurred during 2019.
Explanation / Answer
Utilities($18,000 * 40%) $7,200 Sales commissions $65,000 Depreciation, office equipment $17,000 Advertising $61,000 Total period costs $150,200