A manufacturing company that produces a single product has provided the followin

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

What is the total period cost for the month under variable costing?

Selling price $ 93 Units in beginning inventory 0 Units produced 4,500 Units sold 4,400 Units in ending inventory 100 Variable costs per unit: Direct materials $ 20 Direct labor $ 31 Variable manufacturing overhead $ 2 Variable selling and administrative $ 10 Fixed costs: Fixed manufacturing overhead $ 45,000 Fixed selling and administrative $ 79,200

Explanation / Answer

total period cost=variable selling and administrative+Fixed manufacturing overhead+Fixed selling and administrative

=(10*4400)+45000+79200

which is equal to

=$168200.

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